If a Firm Lowered the Price of the Product It

question 236

Multiple Choice

If a firm lowered the price of the product it sells and found that total revenue did not change, then the demand for its product is

• A)perfectly inelastic.
• B)perfectly elastic.
• C)unit elastic.
• D)relatively elastic.

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Definitions:

Administrative Costs

Expenses related to the general operations of a business, such as office supplies, management salaries, and utilities, which do not directly tie to specific product or service production.

Variable Manufacturing Costs

Costs that vary directly with the level of production, such as raw materials, direct labor, and certain overhead expenses.

Operating Income

Earnings before interest and taxes (EBIT), representing the profit from a company's core business operations.

Export Fees

Charges associated with sending goods or services to another country, which can include customs duties, taxes, and transportation costs.