Consider the Price and Quantity Data Below for a Perfectly

question 72

Multiple Choice

Consider the price and quantity data below for a perfectly competitive firm producing mousetraps.
TABLE 9-1
-Refer to Table 9-1.Suppose this firm is currently selling 1750 mousetraps at the market price of $5.If the firm raises its price to $6,its total revenue will be

• A)$0.
• B)greater than or equal to $1750.
• C)greater than or equal to $6250.
• D)$10 500.
• E)greater than $10 500.

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Definitions:

Covariances

A measure indicating the extent to which two variables change in tandem over time.

Well-Diversified Portfolio

A collection of investments that spans various assets to minimize risk while maximizing returns.

Single Index Model

A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.

Portfolio's Sigma

A statistical term that represents the standard deviation of returns of an investment portfolio, reflecting its risk.