Author Question: According to your textbook, which procedure is the general rule to follow in order to maximize net ... (Read 83 times)

captainjonesify · **on:** Jun 29, 2018

According to your textbook, which procedure is the general rule to follow in order to maximize net revenue?

A) Always choose a 25 percent markup if demand is inelastic.
B) Always choose a 25 percent markup if demand is elastic.
C) Always choose a markup between 50 and 100 percent (inclusively) if demand in inelastic.
D) Always choose no more than a 10 percent markup if demand is perfectly elastic.
E) None of the above.

Question 2

The invisible hand suggests that:

A) individuals working for self-interest will eventually maximize the well-being of society.
B) equilibrium in a competitive market is determined independent of demand and supply.
C) government intervention is necessary to rectify market imperfections.
D) the price mechanism allocates resources only to the people with high income in the country.