Total Revenue Peaks at 14 Units

Steps:

• Examine the total revenue (TR) column in the table for each output level.
• Identify the output quantity where TR reaches its maximum value.
• Compare TR values across all quantities to confirm the peak.
• Note that TR may increase initially but eventually declines due to falling marginal revenue.

Why B is correct:

• Total revenue is maximized when the output level yields the highest TR value, which occurs at 14 units per the table data, following the revenue maximization principle in microeconomics.

Why the others are wrong:

• A: TR at 2 units is lower than at higher outputs, not the peak.
• C: Price is per unit and cannot exceed total revenue, which is price times quantity; this miscompares metrics.
• D: TR does not always increase; it peaks and then falls as output rises beyond 14 units.

Final answer: B