The Demand Curve Facing Company ABC Is Perfectly Elastic

question 184

Multiple Choice

The demand curve facing Company ABC is perfectly elastic.What is its marginal revenue?

• A)Equal to the average revenue
• B)Less than the price
• C)Higher than the price
• D)Higher than the average revenue

---

Definitions:

Maximizing Profits

The process of making the highest possible profit from business operations within the given market conditions.

Code of Ethics

A set of principles designed to guide the behavior and decision-making of members within an organization or profession.

Utilitarian Benefits

The practical or useful advantages gained from a product, service, or action, focusing on its functionality or utility.

Consumer Protection Agency

Governmental organizations designed to uphold the rights of consumers and ensure fair trade, competition, and accurate information in the marketplace.