If apples have an own-price elasticity of -1.2 then to maximize revenue the firm should lower...
If apples have an own-price elasticity of -1.2 then to maximize revenue the firm should
| lower the price |
| reduce opportunity cost |
| raise the price |
| keep the price constant |
Homework Answers
Ans: lower price
Explanation:
Price elasticity of -1.2 means demand for the good is elastic.It means a small reduction in price leads more increase in demand for the product. So in order to maximize revenue the firms should lower the price.
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