You Are Hired as a Production Analyst at Monopoly-R-Us and You

question 173

Multiple Choice

You are hired as a production analyst at Monopoly-R-Us and you estimate that, at current output, demand is inelastic and marginal cost is positive.You advise your superiors that they can increase profit by

• A)raising price until demand becomes unit elastic
• B)raising price into the elastic range
• C)lowering price until demand becomes unit elastic
• D)lowering price into the elastic range
• E)reduce output without changing price

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Definitions:

Sales Discount

is a reduction in the listed price of a product or service offered to customers as an incentive to prompt payment.

Sales Discount

A reduction in the price of goods or services offered by the seller to the buyer as an incentive for early payment.

Charge Customer

The act of billing a customer for goods or services provided, usually resulting in an accounts receivable entry for the business.

Tile Sales

Revenue generated from the sale of tiles, typically used for flooring or walls.