A Firm Produces and Sells Two Goods, a and B

question 125

Multiple Choice

A firm produces and sells two goods, A and B. Good A is known to have many close substitutes; good B makes up a significant portion of most families' budgets. A price increase for each good would most likely cause total revenues from good A to

• A) increase and total revenues from good B to decrease
• B) increase and total revenues from good B to increase.
• C) decrease and total revenues from good B to increase.
• D) decrease and total revenues from good B to decrease.

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Definitions:

Wells Serviced

The number of oil, gas, or water wells maintained, repaired, or serviced within a specific timeframe.

Servicing Materials

Raw materials or supplies used in the upkeep or maintenance of equipment or facilities.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, helping businesses plan for various levels of performance.

Wells Serviced

This term refers to the number of oil or water wells that have undergone maintenance, repair, or inspection services within a specific period.