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5. It's probably easiest to see the Total revenue as two separate
areas. Since the firm is able to price discriminate it is able
to charge consumers the maximum amount they are willing to pay
for each unit sold. This means that its revenue is everything
under the demand curve up to the total amount sold, 7 units. The
purple shaded area above would be the revenue if it sold all 7 units at a price
of 8 and the yellow shaded area is the added revenue because it can sell each unit for more,
only the 7th unit is sold at a price of 8.
The purple shaded area is 8 x 7 = 56. The yellow shaded area is (remember a triangle's area is 1/2 (base x height) ) 1/2 x 7 x 10 = 35. So total revenue is 56 + 35 = 91.
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