If Total Revenue Remains the Same When Price Is Raised

question 31

True/False

If total revenue remains the same when price is raised or lowered, then we have the special case of "unitary elasticity of demand."

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Definitions:

Short Run

A period of time in economics during which at least one input, like plant size, is fixed and cannot be changed.

Production Costs

The total expenses incurred in the process of producing or manufacturing goods or services.

Inputs

Resources such as raw materials, labor, and capital used in the production process to create goods or services.

Total Fixed Costs

The total of all expenses that do not change, irrespective of the amount of production or the level of business operations.