Which Statement Is True

question 43

Multiple Choice

Which statement is true?

• A)Autonomous C can never be zero.
• B)Induced C can never be zero.
• C)Neither autonomous C nor induced C can be zero.
• D)None is true.

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Definitions:

Marginal Revenue

Marginal Revenue is the additional income earned by a firm for selling one more unit of a good or service.

Quantity Sold

The number of units of a product or service that have been purchased by consumers over a specific period.

Perfect Price Discrimination

A pricing strategy where a seller charges the highest price that each consumer is willing to pay, effectively capturing all consumer surplus as profit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, a measure of producers' benefit.