Consumers’ total expenditures (or a firm’s total revenue) is maximized where (a) the price is relatively...
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Consumers’ total expenditures (or a firm’s total revenue) is maximized where
(a) the price is relatively high and the quantity is relatively low. (b) price-elasticity of demand is equal to one. (c) price-elasticity of demand is greater than one. (d) None of the above.
Homework Answers
"B"
When the firms price elasticity of demand is equal to one then the marginal revenue of the firm is zero, in that case the revenue will be maximised.
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Consumers’ total expenditures (or a firm’s total revenue) is
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0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the...
0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the quantity where: marginal revenue equals zero. elasticity of demand equals zero. elasticity of demand is greater than one. marginal revenue is maximized. average total cost is minimized. We were unable to transcribe this image
Which of the following statements is true? Group of answer choices b and d. Total revenue...
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0/1 pts Question 17 If a firm seeks to maximize total revenue, it should produce the quantity where: marginal revenue equals zero. elasticity of demand equals zero. elasticity of demand is greater than one. marginal revenue is maximized. average total cost is minimized. We were unable to transcribe this image
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