a) Assuming you are a manager of a beverage manufacturing company and you are operating in a non-competitive market were your firms total cost of production is zero. Indicate what you as the manager must do (cut or raise production) to raise revenue when ;
I. Price elasticity of demand is elastic
II. Price elasticity of demand is inelastic
III. Price elasticity of demand is unit elastic
b) Suppose you decide to produce a drink and you discover it has a demand function given by
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Expert's answer
2017-09-14T09:31:06-0400
a) I. Price elasticity of demand is elastic - cut production, II. Price elasticity of demand is inelastic - raise production, III. Price elasticity of demand is unit elastic - any change will have no effect. b) The question is incomplete, so it can't be answered without additional information.
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Dear Melvin, your question is still incomplete. Please use the panel to submit a new question.
b) Suppose you decide to produce a beverage and you discover it has a demand function given by
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