The Demand Curve Facing the Firm Has Been Estimated as Follows

question 20

Multiple Choice

The demand curve facing the firm has been estimated as follows: Which of the following statements about the firm's total revenue is correct?

• A) If the firm sold 3 units of output,it would have revenues totaling $540.
• B) If the firm sold 7 units of output,it would have revenues totaling $980.
• C) If the firm increased output from 2 units to 3 units,total revenue would decline.
• D) If the firm increased output from 6 units to 7 units,total revenue would decline.
• E) If the firm decreased output from 6 units to 5 units,total revenue would decline.

---

Definitions:

Sensory Register

The part of the information-processing system that stores input from the sensory organs for a fraction of a second, during which time it is either attended to and moved into working memory or lost from the system.

Short-Term Memory

The part of the memory system that is responsible for temporarily holding small amounts of information in mind for a brief period.

Transductively

Transductively refers to the cognitive process in children where reasoning is made from one specific instance to another, often without logical basis in the adult sense.

Precausal

Thinking or reasoning that precedes an understanding of causality, often observed in young children who make logical connections between events that are not causally related.