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Consumer & Producer Surplus · Question 24 of 70

Question 24

MediumOriginal question

Read the two statements and choose the correct option.

I. When the total revenue is found by integrating the marginal revenue, the constant is 0, because selling nothing earns nothing.

II. The demand function is the total revenue divided by the number of units.

Options for question 24

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. I: R(0)=0R(0) = 0 fixes the constant. True.

  2. II: R=pxR = px, so p=Rxp = \frac{R}{x}, the price at which xx units sell. True.

Concept
From revenue to price
Typical time
90 s
Your time
—
The rule this testsRevenue and demand from marginal revenue
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Ten questions from Consumer & Producer Surplus, at your own pace.

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