A Firm Sells 20 Units of a Good at a Price

question 174

Multiple Choice

A firm sells 20 units of a good at a price of $5 per unit.If the average cost of production of the good equals $3 per unit,the firm's revenue is ________.

• A) $40
• B) $60
• C) $100
• D) $120

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Definitions:

Revenue Equation

An equation that calculates the total income generated from selling goods or services, often represented as Revenue = Price x Quantity.

Convenience Samples

A sampling method where participants are selected based on their convenience or accessibility to the researcher.

Fixed Expenses

Costs that do not fluctuate with the volume of business or level of activity within a short period.

Breakeven Point

When the expenses and the revenue are equal, so that there is no profit or loss.