Examlex

Solved

If Demand Is Perfectly Elastic

question 39

Multiple Choice

If demand is perfectly elastic,


Definitions:

Variable Costs

Costs that fluctuate in proportion to the level of output or activity in a business, such as raw materials and labor expenses.

Total Revenue

The total amount of money received by a firm from sales of its products or services, before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.

Short Run

In economics, a period during which at least one factor of production is fixed and cannot be changed, limiting adjustments to changes in demand or technology.

Related Questions