Refer to Table 6-5. Katie Graham owns a kayak rental service in Santa Barbara. Table 6.5 shows her estimated demand schedule for kayak rentals per week. She would like to increase her sales revenue by changing the price she charges for rentals
At present she charges $75. Based on the information in the table, Katie
A) should raise her price to $80 to increase her revenue because the demand for kayak rentals is price inelastic.
B) should raise her price to earn the most revenue.
C) should lower her price to $60 to increase her revenue because the demand for kayak rentals is price elastic.
D) is not able to increase her revenue by changing her price because the demand for kayak rentals is unit elastic.
D
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Refer to Scenario 5.7. Since Natasha is a risk-neutral executive, she would choose
A) A. B) B. C) C. D) D. E) E.
A country would tend to experience currency appreciation relative to other countries if: a. the profitability of investments within the country increases relative to the rest of the world. b. people in the foreign currency markets expect the value of the currency to rise in the near future. c. the foreign demand for its exports increases
d. all of the above
In a market-oriented economic model:
a. no government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in price. b. no government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in demand. c. a government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in price. d. a government agency or guiding intelligence oversees the set of responses and interconnections that result from a change in demand.
Long-term contracts are NOT efficient if:
A. the contractual environment is simple. B. specialized investments are unimportant. C. a firm engages in relationship-specific exchange. D. managers shirk.