If You and Your Business Partner Are Trying to Increase

question 89

True/False

If you and your business partner are trying to increase your total revenue, and you want a lower price than she does, it could be because you think the relevant demand curve is more elastic than your partner does.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or a company's output, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The increase in total cost that arises from producing one additional unit of a good or service.

Output

The amount of goods or services produced by a company, industry, or economy within a certain period.