Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A)When a firm lowers the price of its product, total revenue always falls.
• B)When a firm raises the price of its product, total revenue always rises.
• C)When a firm raises the price of its product, total revenue always falls.
• D)When a firm lowers the price of its product, total revenue always rises.
• E)When a firm lowers the price of its product, the impact on total revenue depends upon whether the good is elastic, inelastic, or unit elastic in demand.

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Definitions:

Assignable Variation

Assignable variation is variation in a process that can be traced to specific causes, such as machine malfunctions or operator errors, as opposed to random variation.

Average Run Length

The expected number of items inspected before a change is detected, commonly used in quality control.

False Alarm

An incorrect signal or detection indicating the presence of a condition or attribute that is not actually present.

Control Limits

The boundaries defined in control charts within which a process statistic is considered to be in a state of statistical control.