Total revenues
A. are not the same as total receipts from the sale of output.
B. equal gross revenues minus all expenses of the firm.
C. equal the price per unit times the total quantity sold.
D. are defined as the quantity sold divided by price.
Answer: C
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Some high-end retail stores that distribute mail-order catalogs will prominently offer some very high priced goods for sale (for example, a luxury sports car with gold-plated interior trim) in addition to their regular line of merchandise
Behavioral economists argue that the stores do not really plan to sell these goods, but they use these items to provide the customers with a high reference point for the prices of the other goods in the catalog. This practice is an example of: A) the ultimatim game. B) loss aversion. C) anchoring. D) none of the above
The price of a new toy increases from $5 to $7 and the quantity demanded decreases from 12,000 to 6,000 per month as a result. Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to:
a. 0.5, indicating relatively elastic demand. b. 0.5, indicating relatively inelastic demand. c. 2.0, indicating relatively elastic demand. d. 2.0, indicating relatively inelastic demand.
Refer to the graph shown. The areas that represent the net gain to society of eliminating the monopoly are:
A. A and B. B. A and C. C. D and B. D. D and C.