Mar. 15th, 2008

I was so tired last night that I decided to go to bed without setting an alarm and just let my body sleep as long as it needed to.

I went to bed at 12:30, and slept in until a decadent 11:15. I feel so well rested now.
Calling my faithful readership: I want to know your opinion on a question I was asked on my microeconomics midterm. Don't worry: you don't actually need to know economics to understand the question.

Some background: When you sell a product, your total revenues are equal to price x quantity sold. Sell 50 units at $10 each, your total revenue is $500. For the purpose of the class, it's that's simple. Therefore, if either your price is $0 or your quantity sold is 0, then your total revenues are going to be $0. This is the lowest they can be: there is no such thing (for this course) as total revenues being in the negatives.

Okay, that out of the way, here's the question:

True or False: Total revenues from the sale of a product are lowest when quantity sold equals 0.

Given what I just told you in the background, would you answer "true" or "false," and why? Also, do you think this is an unfair question?

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