Which of the Following Statements Is True

question 21

Multiple Choice

Which of the following statements is true?

• A)Whenever a firm raises its price its total revenue will increase.
• B)When a firm lowers its price its total revenue may either increase or decrease.
• C)Whenever a firm increases its quantity sold its revenue will increase.
• D)Total revenue will equal zero when the demand for a product is unit elastic.

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Definitions:

Corporate Chain

A series of businesses or retail outlets owned and operated by a single company, offering uniform products or services.

Consumer Cooperative

A business owned and operated by the consumers it serves, where benefits and profits are distributed among the members.

Contractual System

A method of organization involving formal agreements between parties that specify the roles, responsibilities, and conditions of a business relationship.

Independent Retailer

An independent retailer is a business that is privately owned and operated, not part of a larger chain or franchise, offering a range of products or services to its customers.