O Levels Economics (2281)•2281/13/O/N/21
Explanation
Revenue equals cost plus profit per bicycle
Steps:
- Identify cost per bicycle: $3000.
- Identify profit per bicycle: $1000.
- Calculate selling price per bicycle: cost + profit = 1000 = $4000.
- Revenue per bicycle equals selling price: $4000.
Why D is correct:
- By definition, profit = revenue - cost, so revenue = cost + profit = $4000 per bicycle.
Why the others are wrong:
- A: Equals profit, not revenue.
- B: No relation; midway between cost and revenue.
- C: Equals cost, not revenue.
Final answer: D
Topic: Firms' costs, revenue and objectives
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