Suppose a Price Taker Is Collecting $1,250 in Total Revenue

question 55

Multiple Choice

Suppose a price taker is collecting $1,250 in total revenue and the total cost of its variable factors of production is $1,000 at its current level of output.One can predict that the firm will

• A) shut down.
• B) earn a profit.
• C) earn a loss.
• D) continue to operate.
• E) raise its price.

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Definitions:

E-selling

The process of selling goods or services over the internet through digital platforms or online stores.

Specific Tasks

Particular duties or responsibilities assigned to someone as part of their job or project.

Potential Buyer

An individual or organization with both the interest and means to purchase a product or service.

Selling Process

The sequence of steps taken by a seller to engage a potential customer with the aim of closing a sale, typically including prospecting, presentation, and follow-up.