Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product.
B) charge more than $5 for its product since increasing the price will increase revenues.
C) charge less than $5 for its product since a lower price will attract more customers.
D) withdraw its product from the market forcing the market price up.
A
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What does marginal cost measure?
What will be an ideal response?
Over the last several decades, per capita world food production has
a. risen rapidly b. been stable c. risen at first, but then fallen d. risen slowly e. fallen continuously
Persistent government budget deficit result in ________ taxes and a ________ stock of capital in the future
A) higher, larger B) lower, larger C) higher, smaller D) lower, smaller
The GDP of Country A is equal to $124.5 billion, and the consumption expenditure in the economy is $85.9 billion. The government of Country A charges a flat tax of 20 percent. The government also spends $4.5 billion per year in the form of transfer payments. The disposable income of the country is equal to: a. $99.6 billion
b. $104.1 billion. c. $124.5 billion. d. $129.0 billion.