Suppose a Price Taker Is Collecting $1,345 in Total Revenue

question 72

Multiple Choice

Suppose a price taker is collecting $1,345 in total revenue and the total cost of its fixed factors of production increases from $200 to $300.One can speculate that the firm will

• A) increase output.
• B) raise its price.
• C) earn a higher profit or a smaller loss.
• D) decrease output.
• E) earn a smaller profit or a greater loss.

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Definitions:

Visual Field

The entire area that can be seen when the eyes are fixed in one position, including both central and peripheral vision.

Sense of Smell

The ability to perceive odors, a chemical sensing system also known as olfaction.

Hearing

The sense by which sound is perceived, involving the detection of vibrations and their interpretation by the brain.

Nearsightedness

A vision condition in which close objects are seen clearly, but objects farther away appear blurred.