A Firm Is Currently Producing in the Elastic Portion of Its

question 72

Multiple Choice

A firm is currently producing in the elastic portion of its demand curve. What course of action do you recommend for it assuming it wants to raise revenue?

• A) Continue producing at the current output level, because it maximizes its total revenue by producing in the elastic portion of its demand curve.
• B) Reduce price, because if it reduces price and demand is elastic, total revenue will increase.
• C) Increase price, because if it increases price and demand is elastic, total revenue will increase.
• D) Continue selling at the same price, but increase the amount it produces.

---

Definitions:

Neurocognitive Functions

The cognitive functions closely linked to the neural processes of the brain, including memory, attention, problem-solving, and decision-making.

Professional Success

The achievement of goals and objectives set within a professional setting, reflecting growth, accomplishment, and recognition in one's career.

Intellectual Abilities

The capacity to think abstractly, reason, understand complex ideas, learn quickly, and learn from experience.

Antisocial Personality Disorder

A psychiatric condition where an individual persistently displays indifference towards morality and overlooks the rights and emotions of other people.