When the Price of a Good Is Low, Selling the Good

question 139

True/False

When the price of a good is low, selling the good is profitable, and so the quantity supplied is large.

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Definitions:

Sales Quantity

The total number of units of a product sold in a specific time period.

Total Revenue

The total amount of money generated by a business from the sale of goods or services before any expenses are subtracted.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, it is the cost of producing one more unit of a good.

Output

The quantity of goods or services produced by a firm or economy.