You have just been hired as a business consultant to determine what pricing policy would be appropriate to increase the total revenue of a bakery. The first step you would take would be to

a. increase the price of every loaf of bread in the store.
b. look for ways to cut costs and increase profit for the bakery.
c. determine the price elasticity of demand for the bakery's products.
d. determine the price elasticity of supply for the bakery's products.

c

Economics

You might also like to view...

A firm in pure competition would shut down when:

a. price is less than average total cost b. price is less than average fixed cost c. price is less than marginal cost d. price is less than average variable cost

Economics

Aggregate supply can be thought of as

A. a fixed amount of output. B. unrelated to the price level. C. a schedule of output at different price levels. D. the volume of goods at the ends of the production possibilities curve.

Economics