If a perfectly competitive firm raised the price of its product,
A) its profits would increase.
B) the quantity of output it sells decreases to zero.
C) rival firms will follow suit and raise their prices also.
D) the firm will be forced to advertise more.
E) its total revenue would rise but its total cost would rise by more.
B
Economics
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An income tax on labor income decreases the ________ of potential GDP, and a tax on interest income decreases the ________ of potential GDP
A) growth rate; growth rate B) level; level C) growth rate; level D) level; growth rate E) None of the above answers is correct.
Economics
What is the significance of the concepts "consumer surplus" and "producer surplus"?
What will be an ideal response?
Economics