If the Quantity Sold of Two-Liter Coke Bottles Increases by 10

question 22

Multiple Choice

If the quantity sold of two-liter Coke bottles increases by 10% when price falls by 2%,what is the total change in revenue?

• A)​Revenue increases by 12%
• B)Revenue increases by 8%
• C)Revenue falls by 8%
• D)​Revenue falls by 12%

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced.

Total Cost

The complete cost of producing a specific amount of goods or services, including both fixed and variable costs.

Purely Competitive Industry

A market structure where many firms sell identical products, and no single company can influence the market price due to competition.

Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.