Answer:
The correct answer is option B.
Explanation:
The marginal revenue of green ink pads is given as,
MR = 2500 - 5Q
The marginal cost of the green ink pads is 5Q.
The total revenue will be maximized at the point where the marginal revenue earned from an additional unit will be zero.
MR = 0
2500 - 5Q = 0
2500 = 5Q
Q = [tex]\frac{2500}{5}[/tex]
Q = 500
So the revenue maximizing level of output will be 500 units.
