Figure 12-2 -Refer to Figure 12-2.Why Is the Total Revenue Curve a Total

question 20

Multiple Choice

Figure 12-2

-Refer to Figure 12-2.Why is the total revenue curve a ray from the origin?

• A)because revenue increases at an increasing rate
• B)because revenue increases at a decreasing rate
• C)because the firm can sell its product at a constant price
• D)because the firm must lower its price to sell more

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Definitions:

Indifference Curves

Graphical representations in microeconomics to illustrate different combinations of goods between which a consumer is indifferent.

Utility Function

A mathematical representation that ranks preferences or satisfaction levels consumers derive from different bundles of goods.

Perfect Substitutes

Products or goods that can replace each other perfectly with no loss of utility to the consumer.

Utility Function

A mathematical representation of a consumer's preference ranking over a set of goods or services, indicating satisfaction levels.