If a firm uses introductory pricing, it is likely ________ short run profit and ________ long run profit

A) minimizing; maximizing
B) maximizing; maximizing
C) maximizing; reducing
D) reducing; maximizing


D

Economics

You might also like to view...

If the cross elasticity of demand between Coke and Pepsi is 2.02, then Coke and Pepsi are

A) complements. B) substitutes. C) normal goods. D) inferior goods. E) Both answers B and C are correct.

Economics

Banks do not need to keep all of their deposits on hand as reserves because

A) only a fraction of deposits are withdrawn at any one time. B) FDIC protects banks from excessive withdrawal demands. C) there is too much risk of bank robberies. D) they can always generate new reserves through the money creation process.

Economics

In 1995 in the United States, consumption expenditure was $5,152 billion, investment was $1,164 billion, government purchases of goods and services were $1,407 billion, and total exports were $855 billion. GDP equaled

What will be an ideal response?

Economics

Erin reduces the price of her handmade boxes by 10 percent. The following month the sale of this product increases 9 percent. As a result, Erin’s income for this month most likely ______.

a. decreased slightly b. decreased sharply c. increased slightly d. increased sharply

Economics