Raising prices raises total costs for total revenue

Total revenue at your fried hushpuppy stand has been declining currently. Your partner persevere that increasing hushpuppy prices will increase total revenue, although you believe only as fervently which lowering prices will produce more total revenue by attracting greater customer faithfulness. You can be sure that: (1) lowering prices will raise total revenue. (2) your partner believes demands for hushpuppies to be more price elastic than you do. (3) lowering prices will decrease your total costs. (4) you view customers’ demands for hushpuppies as more price elastic than your partner does. (5) raising prices will raise total costs.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Boosting total revenue by elastic price

Price hikes for DVD games will boost total revenue providing the price is: (w) located on this demand curve. (x) above $30. (y) below $30. (z) below $25.

Q : Curing shortages in the market Can

Can someone help me in finding out the right answer from the following options. Curing shortages in the market for ice-cream needs: (1) Rises in the price of ice-cream. (2) Reduction in the supply of ice-cream. (3) Rises in the demand for ice-cream. (d) Reduces in the

Q : Capital or current account Is import of

Is import of machinery recorded in capital or current account? Answer: It is recorded in current account since it deals as the purchase of goods.

Q : Substitution Effect-relative price of

The substitution effect signifies to the change in consumption pattern as: (1) The absolute price of the good modifications. (2) Income changes. (3) The relative price of good changes. (4) The quality of good changes. Can someone p

Q : Unlimited liability in a partnership

The word ‘unlimited liability’ in the partnership signifies that a partner: (1) Pays to begin to the partnership, however can’t be held liable for additional/extra funds. (2) Can be held personally accountable for any and each of the partnership&rsqu

Q : Minimize losses at wholesale price in

The wholesale price per bushel of peaches below that it purely competitive peach orchard would minimize losses via shutting down its operations is: (1) $4.00 per bushel of peaches. (2) $7.67 per bushel of peaches. (3) $8.00 per bushel

Q : Production Costs of goods problem I

I have a problem in economics on Production Costs of goods problem. Please help me in the following question. In order to provide more goods on the market, firms increase prices to cover: (1) Rising opportunity costs in the production. (2) Technologic

Discover Q & A

Leading Solution Library

Avail More Than 1418891 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1928905
Asked

3,689

Active Tutors

1418891

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment