Jenny sells lemonade in front of her house in the summer. Several other kids in Jenny's neighborhood also run lemonade stands in the summer. If the lemonade market is perfectly competitive, and Jenny is charging the equilibrium price, then Jenny can increase her revenue if she:
A. increases the price of her lemonade and decreases her output.
B. keeps the price of her lemonade the same and increases the output.
C. decreases the price of her lemonade and doesn't change her output.
D. increases the price of her lemonade and doesn't change her output.
Answer: B
You might also like to view...
List the drawbacks of the gold standard
What will be an ideal response?
Why is the credit spread countercyclical and coincident?
What will be an ideal response?
The tax cut of 2001 turned out to be well-timed because it caused a
A. rightward shift of the aggregate demand curve. B. rightward shift of the aggregate supply curve. C. leftward shift of the aggregate demand curve. D. leftward shift of the aggregate supply curve.
The egalitarian principle says
A. that the age-earnings cycle should determine income. B. that people should be compensated on the basis of what they produce. C. that everyone should have exactly the same income. D. that people should be compensated on the basis of their need.