-In the Above Table, If the Firm Sells 5 Units

question 130

Multiple Choice

-In the above table, if the firm sells 5 units of output, its total revenue is

• A) $15.
• B) $30.
• C) $75.
• D) $90.

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Definitions:

Selling Price

The price at which an item or service is offered to buyers.

Variable Costs

Costs that change in proportion to the level of goods or services produced by a business.

Expenses

Outflows or using up of assets as part of operations of a business to generate revenue.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating how much revenue contributes toward covering fixed costs and generating profit.