If a Firm Collects $90 in Revenue When It Sells

question 34

Multiple Choice

If a firm collects $90 in revenue when it sells 4 units, $100 in revenue when it sells 5 units, and $105 in revenue when it sells 6 units, then one can infer the firm is a:

• A)perfect competitor.
• B)profit maximizer.
• C)price taker.
• D)monopolist.

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Definitions:

Double Taxation

The imposition of two or more taxes on the same income, asset, or financial transaction, often in different jurisdictions.

Corporation

A legal entity that is separate and distinct from its owners, capable of owning property, entering into contracts, and being sued or suing.

Shareholders

Individuals or entities that own shares in a corporation, giving them certain rights such as voting on corporate matters.

Unlimited Personal Liability

A legal obligation where an individual can be held personally responsible for the debts and obligations of a business entity without any limit on the amount.