Firm X owns both tea and coffee plantations. It sells directly to the public. If the firm wants to increase the sales for the coffee, assuming that tea and coffee are substitutes, which of these strategies can it employ?
a. Increase the price for the tea
b. Offer free expedited shipping on the coffee
c. Advertise the tea more heavily
d. Both A&B
d
You might also like to view...
Gilda's Art Gallery pays a commission to her sales people when they sell a painting. This practice is known as
A) the principal-agent problem. B) incentive pay. C) minimizing implicit costs. D) minimizing explicit costs.
Which income maintenance program was started to support the nation's farmers?
A) Supplemental Security Income B) food stamps C) Earned Income Tax Credit program D) AFDC
Which economic question does the decision to produce butter instead of guns answer?
a. What to produce? b. How to produce? c. For whom to produce? d. Who has a comparative advantage in gun production? e. Who has an absolute advantage in butter production?
Suppose a perfectly competitive increasing-cost industry is in long-run equilibrium when market demand suddenly decreases. What might happen to the typical firm in the long run?
a. It would experience no change from the original equilibrium b. It would experience a higher equilibrium price c. It would experience a lower equilibrium price d. It would experience the same equilibrium price but would increase output e. It would experience a lower average total cost and would increase output