At the profit-maximizing level of employment, this business firm's total revenue will be equal to: D) $30.
What is total revenue?
total revenue can be defined as the total amount of money that is generated or earned by a business firm, while using each of the units of labor for the production of its products or services.
At the profit-maximizing level of employment, this business firm's total revenue will be calculated by adding each of the marginal revenue product (MRP) with respect to the amount of labor that was used as follows:
Total revenue = MRP₁ + MRP₂ + MRP₃ + MRP₄ + MRP₅
Total revenue = $12 + $10 + $8 + $6 + $4
Total revenue = $30.
In conclusion, we can logically deduce that at the profit-maximizing level of employment, this business firm's total revenue will be equal to $30.
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