If Price and Total Revenue Vary in Opposite Directions, Demand

question 271

Multiple Choice

If price and total revenue vary in opposite directions, demand is

• A)perfectly inelastic.
• B)perfectly elastic.
• C)relatively inelastic.
• D)relatively elastic.

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Definitions:

Output

Represents the total amount of goods or services produced by a firm or economy in a specific period.

Minimum Efficient Scale

The smallest level of production a firm can achieve while still taking full advantage of economies of scale in terms of cost per unit.

Long-Run Average Total Cost

The per unit cost of production that includes both fixed and variable costs when all inputs are considered variable in the long run.

Output

The amount of products or services that a company, sector, or nation generates over a specific timeframe.