The Average Amount of Money Received for Selling One Unit

question 129

Multiple Choice

The average amount of money received for selling one unit of a product,or simply the price of that unit,is referred to as __________.

• A)profit
• B)total revenue
• C)unit variable revenue
• D)average revenue
• E)marginal revenue

Evaluate the economic implications of pricing strategies above marginal cost.

Explain entry and exit dynamics in long-run market equilibrium.

Understand the concept of short-run and long-run equilibria in monopolistic competition.

Determine the efficient scale of production for a monopolistically competitive firm.

---

Definitions:

Foreign Currency

Currency used outside the issuing country, not the domestic currency of the company conducting the financial transactions.

Foreign Exchange Gain

A profit resulting from changes in the exchange rate between the currency in which a transaction is denominated and the home currency.

Fair Value Hedge

A financial hedge that is used to mitigate the risks associated with the changes in the fair value of assets or liabilities or an identified portion of such assets or liabilities.