Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup. If Java Joe independently decreased its price per cup to $1.50,
a. its sales would rise to 250 cups
b. its revenue would decrease
c. its revenue would rise
d. its total revenue would equal $200
e. the market price will fall to $0.75 as other coffee sellers match the price cut
B
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A competitive equilibrium has all of the following properties except
A) MPN = slope of PFF. B) MRS1,C = MRT1,C. C) MRT1,C = MPN. D) MPN = w.
The three central questions for efficient organizational design include all EXCEPT a. does the decision maker have the relevant information?
b. is the decision maker in a supervisory role? c. who is making the decision? d. does the decision maker have an incentive to make a good decision?
Benefits today cannot be directly compared with costs in the future because:
A. money today is worth more than money in the future. B. people do not have perfect willpower and will waste money today. C. investments aren’t always profitable. D. more information is needed to make investment decisions than is typically available.
A key issue in the present disagreement between Keynesian and monetarist economists is whether
A. monetary policy can bring the economy to full employment. B. the economy is better off with policymakers adopting a strict rule or using their discretion to set policies. C. monetary policy can influence interest rates. D. fiscal policy involves the use of taxation.