Refer to the Graph Above

question 94

Multiple Choice

Refer to the graph above.If the price of the product decreases from $6 to $5 because of a decrease in demand (not shown) ,total revenue would:

• A) increase by $300.
• B) increase by $100.
• C) decrease.
• D) stay the same.

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Definitions:

Production Facilities

Physical locations designed and equipped for the production of goods or services.

Raw Materials

The basic, unprocessed inputs used in manufacturing or production processes to create goods and products.

Normal Profits

The level of profit that is necessary for a business to remain competitive in the market, typically equal to the opportunity cost of the capital employed.

Plant Size

The capacity or physical dimensions of a facility where goods are manufactured or processed.