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Even price is not much of a differentiator among gutter machine manufacturers, Batz continues, “since all the manufacturers are fairly close on their prices.” Knudson’s strategy is not to market itself as the low-price leader but rather, he explains, “My goal is to have our gutter machines run 30 to 35 years.”
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Standby passengers on airlines who pay low rates for seats benefit from the low price. How are the airlines affected? If the demand curve shifts outward and the supply curve remains the same, price will fall. false. A price cut will increase the revenue a firm receives if the demand for its product is.
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A shoe factory has an elasticity of supply of 0.5 as the price of shoes rises from $50 to $75. If the factory produced 100,000 shoes at a market price of $50, how many will be produced at the new price A) 400,000 B) 200,000 C) 125,000 D) 75,000
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