Jenny sells lemonade by the street during the summer time.Several other kids also sell lemonade in Jenny's neighborhood.
Refer to the information above.Suppose that the first week of summer,Jenny charged 25 cents for an 8-ounce cup of lemonade,her next-door neighbor Sam charged 50 cents for an 8-ounce cup of lemonade,and Alex across the street charged 15 cents for an 8-ounce cup of lemonade.What is most likely to happen?
A) Everyone will start to charge 50 cents to maximize revenue.
B) A price war will break out,and all of the kids will gradually increase their prices.
C) Each kid will keep his or her price at the original amount,because they had chosen those prices to maximize profits.
D) Eventually prices will equalize at all three lemonade stands.
Correct Answer:
Verified
Q31: Last summer,Casey took fresh vegetables to sell
Q32: When economists use standard supply and demand
Q33: It takes a bus and a driver
Q34: Which of the following is a condition
Q35: An imperfectly competitive firm is one that:
A)has
Q37: A firm's total profit equals:
A)marginal benefit minus
Q38: Which firm is most likely to meet
Q39: Which of the following is NOT true
Q40: A price-taker confronts a demand curve that
Q41: Suppose 30 employee-hours can produce 50 units
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents