Suppose an Oil Company Wants to Make Its Total Revenue

question 169

Multiple Choice

Suppose an oil company wants to make its total revenue as large as possible. It should charge a price at which the demand for oil is:

• A) elastic.
• B) unitary elastic.
• C) inelastic.
• D) perfectly inelastic.

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Definitions:

Income

Income is the financial gain or revenue received by an individual, company, or entity, typically through work, investment, or business ventures.

Resource Market

A marketplace where productive resources (like labor, capital, and raw materials) are bought and sold.

Product Market

A Product Market is a marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Circular Flow Model

An economic model that describes the movement of money, goods and services, and resources between producers and consumers in the economy.