Economics 0455 · IGCSE · Firms’ costs, revenue and objectives

Firms’ costs, revenue and objectives — practice question

If a firm's average revenue rises from $4$ to $5$ while quantity demanded falls from $20$ units to $10$ units, what effect will this have on the firm's total revenue?

  • Adecreases by $20$
  • Bdecreases by $30$
  • Cincreases by $20$
  • Dincreases by $30$

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