-Using the Data in the Above Table, If Income Is

question 412

Multiple Choice

$$\begin{array} { | c | c | } \hline \begin{array} { l } \text { Income } \\\text { (dollars per } \\\text { month) }\end{array} & \begin{array} { c } \text { Amount spent on } \\\text { restaurant meals } \\\text { (dollars per month) }\end{array} \\\hline 50 & 20 \\\hline 100 & 40 \\\hline 150 & 60 \\\hline 200 & 80 \\\hline\end{array}$$
-Using the data in the above table, if income is on the x-axis and the amount spent on restaurant meals is on the y-axis, the slope of the straight line graph equals

• A) 0.5.
• B) 0.2.
• C) 0.4.
• D) 2.5.

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Definitions:

Total Revenue

The price of a good or service multiplied by the number of units sold.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, factor of production, or input.

Perfect Competition

An industry with so many firms that no one firm has any influence over price, and firms produce an identical product.

Imperfect Competition

All market structures except perfect competition; includes monopoly, oligopoly, and monopolistic competition.