You Have Just Been Hired as a Business Consultant to Determine

question 28

Multiple Choice

You have just been hired as a business consultant to determine what pricing policy would be appropriate in order to increase the total revenue of an online clothing store.What would your first step be

• A)Increase the price of everything in the store.
• B)Look for ways to cut costs and increase profit for the store.
• C)Determine the elasticity of demand for the store's products.
• D)Suggest that the store purchase an entirely new line of clothing that they could sell more cheaply.

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Definitions:

Cartel Arrangements

Agreements among competing firms to control prices or exclude entry of a new competitor in the market, often resulting in anticompetitive behavior.

Oligopolists

Firms or individuals that control the market for a particular good or service in an oligopoly, where a small number of entities dominate.

Monopoly Power

The ability of a single seller to control market prices and total market output.

Collective Profit

The total profit earned by a group of entities or an industry, considering all its members.