Explain how firms use elasticity and revenue to make decisions
What will be an ideal response?
A company's total revenue is defined as the amount of money the company receives by selling its goods. This is determined by two factors: the price of the goods and the quantity sold.The law of demand tells us that an increase in price will decrease the quantity demanded.
You might also like to view...
Javier wants to start a microbrewery business and is thinking of setting it up as a sole proprietorship
What are the advantages and disadvantages he will face by setting up the business as a sole proprietorship as opposed to a partnership or a corporation?
According to the Monetarists, the real effect of monetary policy on output is
a. long-lasting and unpredictable. b. predictable and beneficial. c. nonexistent in the short run. d. always less than fiscal policy