If a Firm Finds the Demand for One of Its

question 55

Multiple Choice

If a firm finds the demand for one of its products is inelastic, it can increase its total revenues by

• A) lowering its price.
• B) increasing fixed costs only.
• C) increasing variable costs only.
• D) increasing both fixed and variable costs.
• E) raising its price.

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Definitions:

Stimulus Discrimination

The process by which animals or humans learn to differentiate between two similar stimuli and respond appropriately to each.

Vanilla Pudding

A sweet dessert made from milk, sugar, vanilla extract, and a thickening agent, often served chilled or at room temperature.

Feel Better

The experience of a reduction in negative symptoms or an improvement in mood or physical well-being.

Higher-order Conditioning

A form of learning in which a stimulus is paired with a previously conditioned stimulus, leading to the same conditioned response.