If the Firm in Figure 23

question 60

Multiple Choice

If the firm in Figure 23.4 raised the price of its product above $4, the firm would

• A) Increase its profits.
• B) Reduce its total revenue to zero.
• C) Increase its total revenue but not its profits because costs would increase.
• D) Not affect revenues but increase profits because costs would decrease.

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Definitions:

Critical

Pertaining to a crucial or decisive point that requires immediate attention or presents a significant challenge.

Competition

The rivalry between businesses to sell their goods or services to customers, often leading to better quality and prices.

Environmental Change

Alterations to the natural environment caused by human activity or natural processes, impacting ecosystems, climate, and land use.

Small Business

A privately owned and operated business, usually characterized by small number of employees and modest revenue.