A competitive firm's profit-maximizing sales quantity ______ when the market price increases.
A. cannot decrease
B. cannot increase
C. may increase or decrease
D. will always decrease
A. cannot decrease
You might also like to view...
Technological knowledge
a. is the same thing as human capital. b. can be discovered but it can never be kept secret. c. is a determinant of productivity. d. does not play a role in the relationship that economists call the production function.
An elasticity of supply of 2.7 means that:
A. quantity supplied changes 2.7 units for each 1 percent change in price. B. supply is inelastic. C. quantity supplied changes 2.7 percent for each 1 percent change in price. D. price changes by 2.7 percent for each 1 percent change in quantity supplied.
The extra cost associated with producing or consuming the next unit is called the:
A. marginal cost. B. variable cost. C. utility cost. D. sunk cost.
Summarize the four supply factors in economic growth.
What will be an ideal response?