The only bakery in a small town has introduced a new type of cookie and is not sure what demand for the cookie looks like. How could the bakery determine the marginal revenue earned by each additional cookie produced?

• A.Conduct a focus group to determine how sensitive customers are to price changes
• B.Ask customers to fill out a survey about how a change in price would affect their purchasing decisions
• C.Decrease the price by small increments and observe the corresponding changes in quantity sold and revenue
• D.Increase advertising to raise demand and sell more cookies

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Which of the following options is an example of revenue?

• A.An order for $3,000 received from a customer
• B.$20,000 received as a down payment from a customer when they placed their order
• C.$10,000 received from a customer for goods purchased a month ago
• D.$300 received from a customer when they purchased and received an item

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A company bought a piece of land in 2012 for $200,000. In 2013, the piece of land temporarily reduced in value to $150,000 but then appreciated in value to $220,000. How would the company report this piece of land on its balance sheet for 2013?

• A.$200,000
• B.$150,000
• C.$220,000
• D.$185,000

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An apparel company is negotiating a new contract with one of its fabric suppliers. Under which of the following conditions will the apparel company have power to bargain for a lower price in the negotiations?

• A.If the apparel company's employees would need training to use a new supplier's materials
• B.If the supplier has several competitors and only a few customers
• C.If the apparel industry is growing quickly
• D.If quality of its fabric is important to the apparel company

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A government is considering issuing a fixed number of permits allowing firms to pollute. When would this system fail to reduce pollution?

• A.During an economic expansion
• B.When the price for a unit of pollution is too high
• C.If the government issued too many pollution permits
• D.When the system is applied to all industries

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