If an Increase in the Price of a Good Leads

question 99

Multiple Choice

If an increase in the price of a good leads to an increase in total revenue, then:

• A)the supply curve must be price inelastic.
• B)the demand curve must be price elastic.
• C)the supply curve is price elastic.
• D)none of the above is necessarily true; there is no information given regarding the price elasticity of supply.

Appreciate the role of change agents in OD, recognizing their values of humanism and democracy.

Understand the importance of organizational self-examination and readiness for change fostered by OD interventions.

Recognize the importance of and strategies for overcoming resistance to change.

Understand the evaluation process of change efforts and the significance of measuring beyond learning outcomes.

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Definitions:

Excess Capacity

A situation where a firm is producing at a level less than its potential maximum output, indicating underutilization of resources.

Monopolistically Competitive

An economic scenario where multiple companies offer products that are alike but not exactly the same, providing them with a certain level of influence over the market.

P < ATC

A situation where the price of a good is less than the average total cost of producing that good, indicating a potential loss to the firm.

Optimal Output

The level of production where marginal cost is equal to marginal revenue, maximizing profit or utility.