Question;Suppose that an oligopolistic is charging $21 per unit of output and selling 31 units each day. What is its daily total revenue? Also suppose that previously it had lowered its price from $21 to $19, rivals matched the price cut, and the firm?s sales increased from 31 to 32 units. It also previously raised its price from $21 to $23, rivals ignored the price hike, and the firm?s daily total revenue came in at $482. Which of the following is most logical to conclude? The firm?s demand curve is;(a) inelastic over the $21 to $23 price range;(b) elastic over the $19 to $21 price range;(c) a linear(straight) down sloping line, or (d) a curve with a kink in it?
Paper#57604 | Written in 18-Jul-2015Price : $22