Recall the Application About Choosing a Price for Drones Based

question 152

Multiple Choice

Recall the Application about choosing a price for drones based on a linear demand curve to answer the following question(s) .
-Recall the Application.Suppose a firm that produces drones has a linear demand curve for its product,with a vertical intercept of $1,200.If the firm initially charged a price of $450 and then raised its price to $600,the firm's total revenue would ________ and total cost would ________.

• A) increase; increase
• B) increase; decrease
• C) decrease; increase
• D) decrease; decease

Recognize the importance of empathy and social intelligence in effective relationship management.

Understand the importance of self-management and integrity in professional development.

Understand the basic concept of Gross Domestic Product (GDP) and its components.

Comprehend the difference between nominal GDP (GDP) and real GDP.

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Definitions:

Unearned Revenue

Income received by a business for goods or services yet to be delivered or provided; also known as deferred revenue.

Prepaid Expense

Payments made beforehand for products or services that will be provided at a later date.

Cash Receipt

A document acknowledging the receipt of cash, often provided to a customer who makes a payment.

Debt Ratio

A financial ratio that measures the proportion of a company's total liabilities to its total assets, indicating the extent of leverage and financial risk.