Use the Following to Answer Question(s)

question 23

Multiple Choice

Use the following to answer question(s) :
Exhibit: Perfectly Competitive Firm

-(Exhibit: Perfectly Competitive Firm) The exhibit shows a perfectly competitive firm that faces demand curve d, has the cost curves shown, and maximizes profit. The firm's total revenue per day is:

• A) $475.
• B) $600.
• C) $900.
• D) $1,200.

---

Definitions:

Perfectly Elastic Demand

Refers to a market situation where consumers are willing to purchase any quantity of the product at a certain price, but no quantity at any other price.

Very Elastic Demand

A situation where the quantity demanded of a product changes significantly due to changes in its price.

Perfectly Inelastic Demand

A situation where the demand for a product remains constant regardless of changes in its price.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with its demand either being elastic or inelastic.