Refer to Table 14-8. If Brawny Juice selects a high price, what is Power Fuel's best strategy and what will Power Fuel earn as a result of this strategy?
A) Power Fuel will select a low price and earn $16 million.
B) Power Fuel will select a low price and earn $8 million.
C) Power Fuel will select a high price and earn $12 million.
D) Power Fuel will select a high price and earn $16 million.
A
You might also like to view...
Even though a perfect price discriminator can extract all of the consumer surplus, how can it be efficient?
What will be an ideal response?
If demand for a seller’s product is elastic, a price increase will decrease total revenue.
Answer the following statement true (T) or false (F)
Initially a bank has a required reserve ratio of 20 percent and no excess reserves. If $5,000 is deposited into the bank, then initially, ceteris paribus,
A. Required reserves will increase by $5,000. B. This bank can increase its loans by $5,000. C. This bank can increase its loans by $4,000. D. Total reserves will increase by $4,000.
Chelsea wants to start her own Christmas ornament business. She can purchase a suitable factory that costs $100,000 . Chelsea currently has $150,000 in the bank earning 3 percent interest per year. Suppose Chelsea purchases the factory using $50,000 of her own money and $50,000 borrowed from a bank at an interest rate of 6 percent. What is Chelsea's annual opportunity cost of purchasing the
factory? a. $2,000 b. $3,000 c. $4,500 d. $5,000