This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A firm is currently producing in the inelastic portion of its demand curve. What course of action ... (Read 20 times)

Evvie72

  • Hero Member
  • *****
  • Posts: 519
on: May 25, 2020

Question 1

A restaurant owner knows that the demand for hamburgers is elastic. If she wants to increase total revenue from hamburger sales, she should
◦ decrease the price of hamburgers.
◦ decrease the supply of hamburgers.
◦ keep the price of hamburgers constant.
◦ increase the price of hamburgers.

Question 2

A firm is currently producing in the inelastic portion of its demand curve. What course of action should you recommend to this firm?
◦ Continue selling at the same price, but increase the number of units it produces.
◦ Reduce price, because if demand is inelastic and price is reduced, total revenue will increase.
◦ Continue producing at the current output level, because the firm will maximise its total revenue by producing in the inelastic portion of its demand curve.
◦ Increase price, because if demand is inelastic and price is increased, total revenue will increase.
Essential Economics for Business ¦ Sloman, Jones ¦ 5th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by Evvie72 on May 25, 2020

Ksh22

  • Sr. Member
  • ****
  • Posts: 297
Reply #1 on: May 25, 2020
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 25% of students answer this correctly


Evvie72

  • Member
  • Posts: 519
Reply 2 on: May 25, 2020
Great answer, keep it coming :)

aruss1303

  • Member
  • Posts: 314
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Vampire bats have a natural anticoagulant in their saliva that permits continuous bleeding after they painlessly open a wound with their incisors. This capillary blood does not cause any significant blood loss to their victims.

A proposed pathway for the action of the E. coli chaperonins GroEL A proposed pathway for the action of the E. coli chaperonins GroEL
Comparison of Graded Potentials and Action Potentials Comparison of Graded Potentials and Action Potentials
The phases and ionic basis of an action potential. The phases and ionic basis of an action potential.
Action of glucocorticoids (GCs) in suppressing immune and inflammatory reactions mediated by cytokin Action of glucocorticoids (GCs) in suppressing immune and inflammatory reactions mediated by cytokin
The growth in demand for energy use is met by burning fossil fuels The growth in demand for energy use is met by burning fossil fuels
Technology In Action Complete Technology In Action Complete
Video: Bone Healing Animation

For a complete list of videos, visit our video library