Refer to the table which shows the short-run cost data of a perfectly competitive firm that produces bird feeders. Assume that output can only be increased in batches of 100 units.
If the market price of each bird feeder is $8, what is the firm's total revenue when the profit-maximizing quantity is found at the output where MR = MC?
A. $2,400
B. $3,200
C. $4,000
D. $4,800
Quantity Total Cost (Dollars) Variable Cost (Dollars)
0 $1,000 $0
100 1,360 360
200 1,560 560
300 1,960 960
400 2,760 1,760
500 4,000 3,000
600 5,800 4,800