Scenario 18-1
Gertrude Kelp owns three boats that participate in commercial fishing for fresh Pacific salmon off the coast of Alaska. As part of her business she hires a captain and several crew members for each boat. In the market for fresh Pacific salmon, there are thousands of firms like Gertrude's. While Gertrude usually catches a significant number of fish each year, her contribution to the entire harvest of salmon is negligible relative to the size of the market.
-Refer to Scenario 18-1.If the price of fresh Pacific salmon were to decrease significantly,it is most likely that Gertrude would

Question

Quizplus · Accepted Answer

If the price of Pacific salmon decreases significantly, Gertrude's revenue would also decrease. This would lead her to cut costs, which would most likely involve reducing her demand for crew members. Hiring more boats or crew members would only increase costs and worsen the situation. Becoming a seller in at least one factor market is not mentioned in the scenario as a relevant option for Gertrude.

Scenario 18-1 Gertrude Kelp Owns Three Boats That Participate in Commercial Fishing