The candy store represented in the figure to the right is currently selling Qa units of candy at a price of Pa. Is this candy store maximizing its profit and if it is? not, what would you recommend to the? firm?
A) Yes, it is maximizing its profit by charging the highest price possible.
B) No, it is not; since its marginal cost is constant, it should produce and sell as much candy as it can. It should sell Qd units at a price of Pd.
C) No, it is not; it should lower its price to Pc and sell Qc units.
D) No, it is not; it should lower its price to Pb and sell Qb units.
Answer : D) No, it is not; it should lower its price to Pb and sell Qb units.
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In a game of bargaining, the player who is willing to:
A. be cooperative has more bargaining power and so receives a worse payoff. B. hold out longer has more bargaining power and so receives a worse payoff. C. hold out longer has more bargaining power and so receives a better payoff. D. make the first move has more bargaining power and so receives a better payoff.
Price elasticity of demand is typically negative because
a. as price decreases, quantity demanded decreases b. as price decreases, quantity demanded increases c. as price decreases, demand decreases d. as price decreases, demand increases e. consumers rarely respond to a change in price
Which of the following is true of American Depository Receipts (ADRs)? a. ADRs cannot be sold "over the counter." b. Each ADR is backed by a specific number of the issuer's local shares
c. An ADR is a stock that trades in foreign countries but represents a specified number of shares in a U.S. corporation. d. For foreign companies, ADRs are an easy way to purchase raw material from U.S. producers. e. ADRs are issued or sponsored in the United States by the federal government.
In the acronym PYNTE, the letter “Y” stands for changes in ______.
a. income b. number of buyers c. tastes d. expectations