At a Price $4 for Good X, a Firm Is

question 43

Multiple Choice

At a price $4 for Good X, a firm is willing to supply 1,400 units of X. For a price of $5 for Good X, the firm is willing to supply 1,500 units X. The change in revenue for the firm when the price of the good rises from $4 to $5 is a:

• A) $100 increase in total revenue.
• B) $1,500 increase in total revenue.
• C) $7,500 increase in total revenue.
• D) There is not enough information to answer the question.

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Definitions:

Previous Measure

An earlier metric or standard used for comparison or benchmarking purposes.

Du Pont Chart

A graphical representation that breaks down the return on equity into its components to help understand a company’s financial performance.

Key Performance Drivers

Critical factors or activities that have a significant impact on the success or performance of a business or organization.

Financial Performance Measures

Metrics used to evaluate an organization's financial health, including profitability, liquidity, and solvency ratios.