If the Market Price for a Good Produced by a Price

question 75

Multiple Choice

If the market price for a good produced by a price taking firm is $7, the firm's total revenue is

• A)a flat line at P=$7.
• B)parabolic.
• C)downward sloping.
• D)an upward sloping line beginning at the origin and having a slope of 7

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Definitions:

Consumption

The purchasing and use of goods and services by households.

Units

Basic quantities or measurements, such as items sold or produced, used for analysis or calculation in various contexts.

Unit Elastic

A scenario in demand or supply where a percentage change in price leads to an equal percentage change in quantity demanded or supplied.

Tax Lowered

The reduction of the rates at which individuals or corporations are taxed by the government.