A Single Producer,whose Objective Is to Raise Total Revenue,would Reduce

question 49

Multiple Choice

A single producer,whose objective is to raise total revenue,would reduce the price of its product if it is operating in the portion of the demand curve with price elasticity of demand equal to

• A) 0.
• B) 0.33
• C) 0.033
• D) 1.
• E) 3.

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Definitions:

Profit Margin

A financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

Equity Multiplier

A financial leverage ratio that measures the portion of a company's assets financed by its shareholders' equity.

Absolute Advantage

A condition in which a country, company, or individual can produce a good or service at a lower cost per unit than competitors using the same amount of resources.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.