To Maximize Its Revenue

question 331

Multiple Choice

To maximize its revenue

• A) a firm facing inelastic demand should always raise its price.
• B) a firm facing elastic demand should always raise its price.
• C) a firm should always charge the highest price possible regardless of the elasticity of demand.
• D) None of the above answers is correct.

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Definitions:

Confidentiality

The ethical principle or legal right that a physician or other professional will not disclose information about a client or patient to others without the individual's consent.

Addendum

An additional document appended to a contract, agreement, or other document, containing supplementary information or modifications.

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.