Jerry sells cherry sno-cones along the boardwalk in New Jersey. During the summer this is a perfectly competitive business, and Jerry faces a perfectly elastic demand curve. If he wants to try to increase revenues he should
A. raise the price of his sno-cones to make more per sale.
B. lower the price of his sno-cones to try to sell more.
C. do nothing; there is nothing he can do to increase revenue.
D. keep the price the same but produce more to increase sales.
Answer: D
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
According to the Keynesian view of the demand for money, an increase in uncertainty will cause
A) a decrease in interest rates. B) an increase in interest rates. C) an increase in aggregate income. D) an increase in consumption.
Economists refer to the pattern of income that people derive from different factors of production as the:
A. factor stream of income. B. factor distribution of income. C. expected future factor value. D. factor price.
Oligopoly is characterized by all of the following except
A. some industries that produce identical products. B. frequent price wars. C. high barriers to entry. D. prices that are above the minimum of the ATC curve.