Figure 7-24 -Refer to Figure 7-24.At Equilibrium,total Surplus Is Measured by the Measured

question 59

Multiple Choice

Figure 7-24
-Refer to Figure 7-24.At equilibrium,total surplus is measured by the area

• A)ABD.
• B)ABF.
• C)FBD.
• D)HGCI.

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Definitions:

Marginal Revenue

The increase in income resulting from the sale of one extra unit of a product or service.

Average Revenue

The amount of revenue a company receives per unit of sales, calculated by dividing total revenue by the number of units sold.

Market Equilibrium

A condition in which market supply and demand balance each other, and as a result, prices become stable.

Competitive Industry

A competitive industry is one where numerous producers compete with each other to satisfy the needs and wants of consumers, characterized by free entry and exit and a high level of innovation.