QUESTION 3 State the correct economic criterion for the following problem bought

Question

QUESTION 3 State the correct economic criterion for the following problem bought a soft-drink machine and then had to decide whether to charge S0.75, $1, or $1.25 per drink. The organization recognized that the number of soft drinks sold would depend on the price charged. Eventually the decision was made to chage $1. The criterion was A. Maximize outputs O B. Minimize inputs - C.Answer not listed D Maximize the difference between the outputs and inputs QUESTION 4 State the economic criterion for the following problem: In many cities, grocery stores find that their sales are much greater on days when they advertise special bargains. However, the advertised special prices do not appear to increase the total physical volume of groceries sold by a store. This leads us to conclude that mary shoppers' criterion is A. Minimize inputs O B. Minimize outputs O C. Maximize the difference between the outputs and inputs 0 D. Answer not isted

Explanation / Answer

Answer : 3) Option A is correct. As the sale of soft drink is dependent on the charged price level and the price level is decided on $1, i.e., $1 is the optimal price level which maximize the profit level of organization and hence the output level increase. Therefore, output is maximum here.

4) Option B is correct. As the physical volume of sold groceries is not increasing after advertising special price offer, the shoppers need to minimize the output level.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.