Suppose Clem's Chemical Company wants to increase its total revenue. If there are few substitutes for Clem's Chemicals
A) Clem should increase the price of his chemicals.
B) Clem should decrease the price of his chemicals.
C) the demand for chemicals is elastic.
D) Clem will not be able to change the price of his chemicals.
A
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For a perfectly competitive firm, profit is maximized at the output level where i. total revenue exceeds total cost by the largest amount. ii. marginal revenue equals marginal cost. iii. price equals marginal cost
A) i only B) ii only C) ii and iii D) i and ii E) i, ii, and iii
Some proponents of trade sanctions argue for changes in policy because they fear low standards will be used to capture markets and foreign investment. While theoretically possible, there is little or no support for the view that countries use low labor standards this way, because
A) countries with low labor standards generally have trouble attracting foreign investment. B) low standards can change a country's comparative advantage. C) it is impossible to lower labor standards. D) countries would not have an incentive to have low standards.