According to the example in the textbook, a dollar increase in revenue* or a dollar decrease in purchasing will typically have the same benefits to a company's bottom line (profit). (*For the purposes of this question, the increase in revenue comes from increased number of units sold, not from a price increase.)  True False

Suppose a company has $19,000,000 in (annual) revenue and spends 55% of its revenues on purchases. By how much can this company increase its bottom line (profits) if it can decrease purchasing costs by 1.25%? (Display your answer as a whole number.)

Explain two ways a firm can increase its profit.

Other things equal, a firm’s economic profit rises with an increase in:Question 3Answera.owner-supplied capital.b.owner-supplied labour.c.interest rates.d.the price of its product.

Revenue is defined as:Question 7Answera.The present value of future cash flows from customersb.Economics benefits in the form of increases in the value of assets or decreases in the value of liabilities result in an increase in equity, other than those relating to contributions from equity participantsc.Economics benefits in the form of increases in the value of assets or decreases in the value of liabilities that result in an increase in equity and arising from operating activitiesd.Money received from customers

Following a price decrease, total revenue will:1 pointincrease if the demand is price inelastic.always increase.always decrease.increase if demand is price elastic.