If the market price for a good produced by a price taking firm is $8, the firm's total revenue is
A. downward sloping.
B. a flat line at P=$8.
C. parabolic.
D. an upward sloping line beginning at the origin and having a slope of 8.
Answer: D
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If a firm is maximizing its profit and producing less than the output at which its average total cost is minimized, then that firm
A) must be suffering an economic loss. B) must be earning an economic profit. C) has excess capacity. D) is producing at its capacity output. E) must be earning a normal profit.
One way of addressing the associated market failure that generates both private costs and external costs is for this activity to be
A) left alone. B) taxed. C) subsidized. D) banned.
When a corporation wishes to issue shares of stock, it will do so by working through
A. the New York Stock Exchange. B. a commercial bank. C. an investment bank. D. a stock broker.
As resources move from low-valued uses in a resource market to highly-valued uses in another resource market, the price paid to the resource in the highly-valued market will
a. not be affected, if the change is temporary b. increase, if the change is temporary c. remain the same d. decrease e. increase, if the change is permanent