Total Revenue Is Equal to

question 121

Multiple Choice

Total revenue is equal to

• A)the amount of funds earned by a firm minus its costs of production.
• B)the total quantity sold of a product over a given period of time.
• C)the price of a product multiplied by the number of units of the product sold.
• D)the monetary value of the capital (for example, plant and equipment)a firm owns.

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Definitions:

Convex Preferences

A preference structure where the consumer prefers mixed bundles of goods to extreme bundles, represented graphically by a bowed-inward indifference curve.

Monotonic Preferences

A preference pattern where more of a good is always preferred to less, maintaining a consistent order.

Utility Function

A mathematical representation of how different combinations of goods or services lead to different levels of happiness or satisfaction for an individual.

Income

Earnings from work or investments, often measured in terms of money received over a period of time.