4. Do you think Wrigley's will raise or lower their total Revenue by raising prices? Explain your answer using my favorite term - ELASTICITY.
If Wrigley raises the price, he will lower their total revenue because in order to increase the total revenue, he will have to lower the price.
5. A. What are Joanne's total revenues?
TR=P*Q = $400*1000=400,000
B. What are Joanne's explicit costs?
C. What is her accounting profit?
D. List 2 important implicit costs that Joanne has not included.