Ian's research indicates that at a price of $12, his firm would sell 100,000 units of output. He determines that sales of 100,000 units is too low for his preferences. He then explores his options to increase sales. In order, what types of analysis are used in this three-stage chain of events?
A)positive; positive; normative
B)positive; normative; positive
C)normative; positive; normative
D)normative, positive; positive

Question

Quizplus · Accepted Answer

The first stage is positive analysis as it describes the factual situation of selling 100,000 units at $12. The second stage is normative as Ian expresses a preference that 100,000 units is too low. The third stage is positive as he explores factual options to increase sales.

Ian's Research Indicates That at a Price of $12, His