Holding everything else equal, total revenue increases
A)only when quantity increases.
B)only when price increases.
C)whenever total costs increase.
D)when either price or quantity increase.
E)only when both price and quantity increase.

Question

Quizplus · Accepted Answer

Total revenue is calculated by multiplying price and quantity. Therefore, an increase in either the price or quantity will result in an increase in total revenue. Holding everything else equal, an increase in total costs would decrease profit margins, but not necessarily total revenue.

Holding Everything Else Equal, Total Revenue Increases