Consider the CEO of a company that sells coffee at small free standing shops around the country. The Board of Directors is considering increasing the number of locations in an effort to increase total revenue, ceteris paribus. Number of locations Total revenue 2012 2000 $60 million 2013 2.500 $75 million Based on the CEO's analysis, he reports to the Board that... total revenue is unit elastic with respect to the number of locations. total revenue is inelastic with respect to the number of locations. total revenue is elastic with respect to the number of locations.

Consider the CEO of a company that sells coffee at small free standing shops around the country. The Board of Directors is considering increasing the number of locations in an effort to increase total revenue, ceteris paribus. Number of locations Total revenue 2012 2000 $60 million 2013 2.500 $75 million Based on the CEO's analysis, he reports to the Board that... total revenue is unit elastic with respect to the number of locations. total revenue is inelastic with respect to the number of locations. total revenue is elastic with respect to the number of locations.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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