In the graph for the relationship between elasticity of the demand and total revenue, we can see that at five units, ______.
a. total revenue is rising and marginal revenue is profitable
b. total revenue is rising and marginal revenue is unprofitable
c. total revenue is maximized and marginal revenue is zero
d. total revenue is minimized and marginal revenue is equal to price
c. total revenue is maximized and marginal revenue is zero
You might also like to view...
Refer to Figure 5-9. Let's suppose the government imposes a tax of $50 per unit of toilet paper to bring about the efficient level of production. What happens to the market price of toilet paper?
A) It rises by more than $50 per unit. B) It rises by $50 per unit. C) It rises by less than $50 per unit. D) It remains the same because the tax is imposed on producers who create the externality.
When a tax on output is imposed to internalize the external costs of pollution, the supply curve shifts down by the amount of the tax
Indicate whether the statement is true or false
Smoothing techniques are a form of ____ techniques which assume that there is an underlying pattern to be found in the historical values of a variable that is being forecast
a. opinion polling b. barometric forecasting c. econometric forecasting d. time-series forecasting e. none of the above
Buyers always prefer lower prices to higher prices
Indicate whether the statement is true or false