A Firm That Is Using Marginal Analysis to Set Prices

question 237

Multiple Choice

A firm that is using marginal analysis to set prices finds that setting a price of $180 per unit would result in the sale of 6 units. The total variable cost of production is equal to $300 and total fixed cost is equal to $150. In this case, the firm's total revenue will be _____.

• A) $900
• B) $1,800
• C) $1,980
• D) $1,620
• E) $1,080

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Definitions:

Pleurisy

An inflammation of the pleura, the membrane surrounding the lungs, causing sharp chest pain with breathing.

Asbestosis

A chronic lung disease caused by inhaling asbestos fibers, characterized by lung tissue scarring and shortness of breath.

Chronic Bronchitis

A long-term inflammation of the bronchi in the lungs, characterized by coughing and mucus production.

Bronchi

The main passageways into the lungs, which branch off from the trachea and allow air to travel in and out of the lungs.