-The Curve in the Above Graph

question 153

Multiple Choice

-The curve in the above graph:

• A)can only be a perfectly inelastic demand curve.
• B)can only be a perfectly inelastic supply curve.
• C)may be either a perfectly inelastic demand curve or a perfectly inelastic supply curve.
• D)can be neither a perfectly inelastic demand curve nor a perfectly inelastic supply curve.

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Total Revenue

The total amount of money generated by the sale of goods or services before any expenses are subtracted.

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Variable Cost

Costs that vary directly with the level of production or with volume of output.