Answer to Question #127106 in Economics of Enterprise for aaa

Question

In order to maximize the Total Revenue, should the bookstore increase the price for fiction books? Explain why.

Answer 1

Total revenue refers to the money earned by a company in a day or when it sells goods or services to customers. It is calculated by multiplying price and quantity sold.

In order to increase the total revenue the bookstore should reduce its price which thus leads to an increase in the quantity sold.