Suppose an Oil Company Wants to Make Its Total Revenue

question 169

Multiple Choice

Suppose an oil company wants to make its total revenue as large as possible. It should charge a price at which the demand for oil is:

• A) elastic.
• B) unitary elastic.
• C) inelastic.
• D) perfectly inelastic.

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Definitions:

Account

A record in bookkeeping that tracks financial transactions of a specific type, such as assets, liabilities, expenses, or revenue.

FUTA

The Federal Unemployment Tax Act, a United States federal law that imposes a payroll tax on businesses to fund state workforce agencies.

SUTA

SUTA, or State Unemployment Tax Act, is a taxation mechanism in the United States that mandates employers to pay a tax to fund unemployment benefits for workers who lose their jobs.

FICA-Social Security

The portion of the Federal Insurance Contributions Act tax that funds the Social Security program, providing benefits for retirees and disabled individuals.