Asked by jhadir Charles on Jul 29, 2024
Verified
Refer to Table 14-2. This firm maximizes total revenue by producing
A) 1 unit.
B) 3 units.
C) 5 units.
D) as many units as possible.
Demand Curve
A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing to purchase at different prices.
Competitive Market
A market structure characterized by a large number of buyers and sellers, where no single entity has significant power to influence the market price.
Quantity Demanded
The specific amount of a good or service that consumers are willing and able to purchase at a given price.
- Mastery in calculating total revenue and recognizing its variations with changes in the number of units sold.
- Understanding of how demand curves behave in a competitive market and their impact on firm decisions.
Verified Answer
CS
Cordell ShortAug 04, 2024
Final Answer :
D
Explanation :
Total revenue is maximized when the firm produces as many units as possible since the price remains constant at $5 per unit regardless of the quantity demanded.
Learning Objectives
- Mastery in calculating total revenue and recognizing its variations with changes in the number of units sold.
- Understanding of how demand curves behave in a competitive market and their impact on firm decisions.