Figure 55 Shows the Total Revenue Curve for a Firm

question 121

Multiple Choice

Figure 5.5 shows the total revenue curve for a firm. Which of the following statements is true in the range of the total revenue curve labeled B?​ ​
Figure 5.5.
​

• A)Demand is elastic.
• B)Demand is inelastic.
• C)Demand is unit elastic.
• D)Demand is perfectly inelastic.
• E)Demand is perfectly elastic.

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Definitions:

Short Run

A period in economics during which some factors of production or inputs are considered fixed.

Long Run

The long run is a period in economics where all factors of production and costs are variable, allowing companies to adjust all inputs.

Profit

The profit earned when the revenue obtained from a business operation surpasses the expenses, costs, and taxes required to maintain that operation.

Loss

A financial condition that occurs when expenses exceed revenues, implying a negative profit.