Given a demand curve, explain how total revenue may be calculated
A demand curve consists of the prices and corresponding quantities demanded at those prices. Total revenue is price times quantity demanded. Therefore, total revenue is the area of a rectangle formed under the demand curve by the choice of any price-quantity combination.
You might also like to view...
The passage of the ________ in 1930 sparked a trade war that caused net exports to decrease and real GDP to decrease
A) Sherman Antitrust Act B) Clayton Act C) Smoot-Hawley Tariff D) Cellar-Kefauver Act
If prices in the economy rise, then
A) the purchasing power of a dollar rises. B) the purchasing power of a dollar stays constant. C) the purchasing power of a dollar declines. D) the purchasing power of a dollar cannot be determined.
A lender need not be penalized by inflation if the
A. short-term rate of inflation is less than the long-term rate of inflation. B. long-term rate of inflation is less than the short-term rate of inflation. C. lender correctly anticipates inflation and increases the nominal interest rate accordingly. D. inflation is unanticipated by both borrower and lender.
If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption, then the good likely has too many resources devoted to its production
a. True b. False Indicate whether the statement is true or false