1) If a firm finds the demand for one of its products is inelastic, it can...
1) If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by?
A) increasing fixed costs only.
B) increasing variable costs only.
C) lowering its price.
D) raising its price.
E) increasing both fixed and variable costs.
Homework Answers
Increasing the price of the goods that are inelastic will increase the revenue of the firm because for inelastic goods the price and revenue are directly related. The answer is ""D.
Add Answer to:
1) If a firm finds the demand for one of its products is
inelastic, it can...
15/19 A firm facing a horizontal demand curve: can increase its output as much as it...
15/19 A firm facing a horizontal demand curve: can increase its output as much as it wants at a given price. can affect the price it receives for its output faces a perfectly inelastic demand curve for its product cannot increase its output even if it wants to. is likely to price its goods below market price. CONTINUE 16/19 A profit-maximizing, perfectly competitive firm would never operate at an output level where. it would not cover all of its fixed...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government...
1. Suppose the price elasticity of demand for farm products is inelastic and the federal government wants to follow a policy of increasing income for farmers. To accomplish this goal, the government will promote the programs that.........(increase or decrease) the price of farm products, knowing that the percentage change in price will be......…...(exactly the same as, Greater than, or smaller than) the percentage........(increase or Decrease) in quantity. 2. Suppose the price elasticity of demand for used cars is estimated to...
A startup firm in a perfectly competitive market finds that its average total cost is higher...
A startup firm in a perfectly competitive market finds that its average total cost is higher than the market price. Since the firm is incurring short-run losses, the management is debating whether to continue operations. Alex Ferguson, a senior manager, feels that this is a temporary phase and the firm should continue operations. Which of the following, if true, would weaken Alex's argument? A. A few of the existing competitors have raised the prices of their products. B. The firm...
A bakery works out a demand function for its chocolate chip cookies and finds it to...
A bakery works out a demand function for its chocolate chip cookies
and finds it to be
q equals Upper D left parenthesis x
right parenthesis equals 567 minus 22 xq=D(x)=567−22x,
where
qq
is
the quantity of cookies sold when the price percookie, in
cents,
is
xx.
Use
this information to answer parts
a)
through
f).
A bakery works out a demand function for its chocolate chip cookies and finds it to be q=Dx) = 567-22x, where is the quantity...
Say a monopolist knew that at the current price for its product demand is inelastic. If...
Say a monopolist knew that at the current price for its product demand is inelastic. If marginal costs for this firm are zero, then in order to maximize profits this monopolist should A increase output. reduce output. keep output at the same level. D decrease its price.
Question 2: A monopolistic firm produces goods in a market where the demand function is P...
Question 2: A monopolistic firm produces goods in a market where the demand function is P = 43 - 0.3Q and the corresponding total cost function is TC =0.0103 – 0.4Q2 +3Q (a) What can you say about the fixed costs of this firm? (b What can you say about the variable costs of this firm? (c) Find the (non-zero) output for which average cost is equal to marginal cost, and explain the significance of this value. (d Find the...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
1. Your firm expands its output in a time when demand appears to be increasing. Demand...
1. Your firm expands its output in a time when demand appears to be increasing. Demand for all goods is increasing because of inflation, and consumers want to buy all goods faster because their real purchasing power is falling due to inflation. This situation could indicate that your firm experienced? A. deflation. B. future price uncertainty. C. money illusion. D. menu costs. E. a price confusion problem.
3. A firm that acquires a substitute product can reduce cannibalization by a. doing nothing. b. repositioning a product...
3. A firm that acquires a substitute product can reduce cannibalization by a. doing nothing. b. repositioning a product so that it does not directly compete with the substitute. c. setting the same price on both products. d. lowering prices on the low-margin products. 5. After firm A producing one good acquired another firm B producing another good, it lowered the prices for both goods. One can conclude that the goods were a. substitutes. b. complements. c. not related. d....
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its varia...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $10,000,000. The...
15/19 A firm facing a horizontal demand curve: can increase its output as much as it wants at a given price. can affect the price it receives for its output faces a perfectly inelastic demand curve for its product cannot increase its output even if it wants to. is likely to price its goods below market price. CONTINUE 16/19 A profit-maximizing, perfectly competitive firm would never operate at an output level where. it would not cover all of its fixed...
A bakery works out a demand function for its chocolate chip cookies
and finds it to be
q equals Upper D left parenthesis x
right parenthesis equals 567 minus 22 xq=D(x)=567−22x,
where
qq
is
the quantity of cookies sold when the price percookie, in
cents,
is
xx.
Use
this information to answer parts
a)
through
f).
A bakery works out a demand function for its chocolate chip cookies and finds it to be q=Dx) = 567-22x, where is the quantity...
Say a monopolist knew that at the current price for its product demand is inelastic. If marginal costs for this firm are zero, then in order to maximize profits this monopolist should A increase output. reduce output. keep output at the same level. D decrease its price.
Question 2: A monopolistic firm produces goods in a market where the demand function is P = 43 - 0.3Q and the corresponding total cost function is TC =0.0103 – 0.4Q2 +3Q (a) What can you say about the fixed costs of this firm? (b What can you say about the variable costs of this firm? (c) Find the (non-zero) output for which average cost is equal to marginal cost, and explain the significance of this value. (d Find the...
QUESTION 23 When a good or service is a luxury, its price elasticity of demand tends to be Elastic Inelastic Unit Elastic Unknown QUESTION 24 A decrease in the price of a product that a firm sells will cause the demand for it to increase. True False QUESTION 25 Economic profits are equal to total revenues minus Only implicit costs Only explicit costs Implicit and explicit costs Marginal cost QUESTION 26
Most questions answered within 3 hours.
-
What is the net ionic equation for the reaction that would occur
when an aqueous solution...
asked 1 hour ago -
A
student bought $1000 worth of furniture. What is the equivalent
annual cost if it is...
asked 2 hours ago -
What taboo subject did Ida B. Wells suggest was consensual
between black men and white women?...
asked 3 hours ago -
You have just been hired by the EPA to help with the new gas
mileage standards...
asked 4 hours ago -
4) A firm is hit by increases in its wage rate, w.
a) How does this...
asked 4 hours ago -
A square current loop 5.4 cm on each side carries a 510 mA
current. The loop...
asked 6 hours ago -
What are five tips in conducting knowledge assessment/literature
review research? Each of these tips needs to...
asked 7 hours ago -
Antigen presenting cells link innate and adaptive immune
responses. In the theoretical scenario where phagosomes cannot...
asked 7 hours ago -
Dealing with conflict, in my opinion, is a skill and an art. I
believe that those...
asked 8 hours ago -
6. A long straight wire with circular cross section and radius
1.5 cm carries a 1.2...
asked 8 hours ago -
Deacon Corporation has provided the following financial data
from its balance sheet and income statement:
Year...
asked 9 hours ago -
List and discuss at least three variables from everyday life for
which you expect the variable ...
asked 8 hours ago