-In the Above Figure, Along Which Range Would Total Revenue

question 124

Multiple Choice

-In the above figure, along which range would total revenue remain unchanged by raising prices?

• A) Between point a and point b
• B) Between point c and point d
• C) Between point d and point e
• D) Below point e and above point a.

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Definitions:

MC Curve

Short for Marginal Cost Curve, it represents the change in total cost that arises when the quantity produced is incremented by one unit.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the total quantity produced, indicating the average cost per unit of output.

Marginal Product

The additional output that is produced by adding one more unit of a specific input, while holding other inputs constant.