When a Firm Sells Each Unit of Output for the Same

question 129

Multiple Choice

When a firm sells each unit of output for the same price, its total revenue curve:

• A) is a straight line through the origin
• B) is an downward- sloping line with a vertical intercept at the price of the good
• C) is an upward- sloping line with a vertical intercept at the price of the good
• D) is a horizontal line

---

Definitions:

Periodic Interest Rate

The interest rate charged or earned over a particular period of time, often monthly, quarterly, or annually, as opposed to the annual percentage rate (APR).

Annuity

A retirement funding product that assures fixed payments over time to the receiver, primarily aimed at providing a stable income for retirees.

Payment Interval

The regularity with which payments are dispensed, for instance, on a monthly, quarterly, or yearly basis.

Compounded Quarterly

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, done four times a year.