You Cannot Fire a Gun Softly, or Flush a Toilet

question 2

Multiple Choice

You cannot fire a gun softly, or flush a toilet halfway. Like an action potential, gunfire and a toilet's flush follow the __________ law.

• A)this-or-that
• B)is-or-ain't
• C)all-or-none
• D)binary response

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Definitions:

Break-Even Point

An output at which a firm makes a normal profit (total revenue = total cost) but not an economic profit.

Variable Costs

Costs that vary directly with the level of production.

Marginal Revenue

The increase in revenue that results from the sale of an additional unit of output.

Total Revenue

The total income received by a firm from the sale of its goods or services, calculated as the unit price multiplied by the quantity sold.