A Private Firm Would Have Difficulty Producing and Selling

question 178

Multiple Choice

A private firm would have difficulty producing and selling

• A)grapes.
• B)cars.
• C)hamburgers.
• D)national defense.
• E)lumber.

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Definitions:

Total Revenues

Total Revenues refer to the total receipts from sales of goods or services by a company before any expenses are subtracted.

Fixed Costs

These stay the same no matter how much output changes.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service.

Total Revenue

The total amount of money a company receives from its business activities, calculated by multiplying the price of goods or services by the quantity sold.