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Recall the Application about choosing a price for drones based on a linear demand curve to answer the following question(s) .
-Recall the Application. Suppose a firm that produces drones has a linear demand curve for its product, with a vertical intercept of $1,500. If the firm initially charged a price of $500 and then raised its price to $750, the firm's total revenue would ________ and total cost would ________.
Abnormal Earnings
Income that deviates significantly from what is typical or expected, usually referring to profits significantly higher or lower than those typical for the industry or the company's history.
Valuation Approach
The methodologies and procedures used to determine the value of an asset, a company, or a financial instrument.
Expected Earnings
The anticipated profit or income generated by an investment or a business activity in a future period.
Disadvantages
The drawbacks or unfavorable aspects associated with a particular decision, action, or strategy.
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