If a Firm Collects $100 in Revenue When It Sells

question 80

Multiple Choice

If a firm collects $100 in revenue when it sells five units and $120 when it sells six units,one can infer the firm is

• A) a perfect competitor.
• B) a monopolistic competitor.
• C) either a perfect competitor or a monopolist.
• D) a monopolist.
• E) an oligopolist.

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Definitions:

Price Elasticity

An indicator of how sensitive the demand or supply for a product or service is to variations in its cost.

Time Available

The amount of time one has free for activities beyond commitments like work or sleep; may refer to leisure or additional productive time.

Related Goods

Products or services that are either complements (used together) or substitutes (used in place of one another) affecting each other's demand.

Price-Inelastic Demand

A situation where the demand for a good or service is relatively unaffected by changes in its price.