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The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question?
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The firm learns that the own price elasticity of product it manufactur...
Answer:
Introduction:
The firm has learned that the own price elasticity of its product is 3.5. The firm needs to take the correct action to raise its total revenue.
Explanation:
Total revenue is the product of the price of the product and the quantity sold. The own price elasticity of demand measures the responsiveness of the quantity demanded to a change in the price of the product. If the demand for the product is elastic, then a change in the price will have a greater effect on the quantity demanded. If the demand is inelastic, then a change in the price will have a smaller effect on the quantity demanded.
Action to be taken:
Based on the given information, the correct action for the firm to take if it wishes to raise its total revenue is to lower the price because demand for the good is elastic. This is because when the own price elasticity of demand is greater than one, a decrease in price will lead to an increase in total revenue.
Conclusion:
In conclusion, the firm needs to lower the price of its product to increase its total revenue because the own price elasticity of demand is 3.5 and demand for the good is elastic.
Introduction:
The firm has learned that the own price elasticity of its product is 3.5. The firm needs to take the correct action to raise its total revenue.
Explanation:
Total revenue is the product of the price of the product and the quantity sold. The own price elasticity of demand measures the responsiveness of the quantity demanded to a change in the price of the product. If the demand for the product is elastic, then a change in the price will have a greater effect on the quantity demanded. If the demand is inelastic, then a change in the price will have a smaller effect on the quantity demanded.
Action to be taken:
Based on the given information, the correct action for the firm to take if it wishes to raise its total revenue is to lower the price because demand for the good is elastic. This is because when the own price elasticity of demand is greater than one, a decrease in price will lead to an increase in total revenue.
Conclusion:
In conclusion, the firm needs to lower the price of its product to increase its total revenue because the own price elasticity of demand is 3.5 and demand for the good is elastic.
Community Answer
The firm learns that the own price elasticity of product it manufactur...
Lower the price because demand for the good is elastic
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The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question?
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The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question?.
The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question?.
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The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question?, a detailed solution for The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? has been provided alongside types of The firm learns that the own price elasticity of product it manufactures is 3.5. What will be the correct action for that firm to take if it wishes to raise its total revenue? 1 point Lower the price because demand for the good is elastic Raise the price because demand for the good is inelastic Raise the price because demand is elastic We need further information in order to answer this question? theory, EduRev gives you an
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