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Unformatted text preview: Question 1 Marks: 1 Price elasticity is the slope of the demand curve. When price elasticity is HIGH? Choose one answer. a. You can increase revenues by cutting prices. b. You can increase profits by cutting prices c. You can decrease revenues by cutting prices d. You can decrease profits by decreasing prices e. You can increase revenue by increasing prices Correct Marks for this submission: 1/1. Question 2 Marks: 1 When marginal revenue is POSITIVE and prices decrease? Choose one answer. a. Unit sales increase b. Total revenue increases c. All of these things happen when marginal revenue is positive and prices decrease. d. Fixed costs stay the same e. Average revenue decreases Correct Marks for this submission: 1/1. Question 3 Marks: 1 Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the average profit if the second 500 cups and $10 for the last 500....
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This note was uploaded on 09/29/2011 for the course MKTG 431 taught by Professor Brucerobertson during the Spring '07 term at S.F. State.
- Spring '07