If demand is price elastic, a decrease in price causes:
a. an increase in total revenue.
b. a decrease in total revenue.
c. no change in total revenue.
d. an increase in quantity, but anything can happen to revenue.
a
Economics
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If a firm with a constant returns to scale production function pays all factors their marginal products, then:
A. economic and accounting profits are both zero. B. economic profit is zero and accounting profit is positive. C. economic profit is positive and accounting profit is zero. D. economic and accounting profit are both positive.
Economics
The results of many empirical studies of short-run cost functions have shown that total costs conform to
A) a quadratic total cost function. B) a power cost function. C) a linear cost function. D) a cubic cost function.
Economics