Chapter 17, Question 3.2:

Chapter 17, Question 3.2: If a firm can increase its total revenue by raising its price, shouldn’t it do so?

Yes, especially if demand is inelastic price should be increased. However, if demand is elastic, an increase in price could actually lead to a decrease in revenue. If overall costs are high and fixed, price should be set to where the maximum number of sales can equal a profit.