What Does Total Revenue Equal

question 195

Multiple Choice

What does total revenue equal

• A)Total output x Price per unit of output
• B)(Total output x Sales price) - Inventory shortage
• C)(Total output x Sales price) - Inventory surplus
• D)Total profit - Total cost

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Definitions:

First-Degree (Perfect) Price Discrimination

A pricing strategy where a seller charges the maximum possible price for each unit consumed that the consumer is willing to pay.

Profit-Maximizing Monopolist

A monopolist's strategy of setting a level of production and price that maximizes its profits.

Inelastic

A characteristic of goods whose demand or supply is not significantly altered when the price changes.

Quantity Sold

The total number of units of a product or service sold during a specific period.