If a Cut in Prices Increases Total Revenue in the Short

question 236

Multiple Choice

If a cut in prices increases total revenue in the short run, what will it do to total revenue in the long run?

• A)​It will decrease total revenue in the long run.
• B)​It will increase total revenue in the long run.
• C)​It will leave total revenue unchanged in the long run.
• D)​Any of the above results are possible in the long run.

---

Definitions:

Entropy Term

A thermodynamic quantity representing the degree of disorder or randomness in a system, significant in predicting the spontaneity of processes.

ΔG°

Standard Gibbs free energy change, a thermodynamic quantity indicating the spontaneity of a reaction at standard conditions; negative values suggest spontaneity.

Exothermic

A chemical reaction or process that releases heat to its surroundings.

Endothermic

Describes a process or reaction that absorbs energy from its surroundings, typically in the form of heat.