In its effort to maximize economic profit, a firm characterized as a price setter must determine:
A) only the price it should charge.
B) only the quantity it should produce.
C) both the price it should charge and the quantity it should produce.
D) neither the price it should charge and the quantity it should produce as these are both determined by forces beyond the firm's control.
C
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Suppose the market for oranges is perfectly competitive and unregulated. Suppose also that the chemicals used to keep the oranges insect-free damage the environment by an estimated $1 per bushel of oranges. Suppose QD = 1000 - 100P and QS = -100 + 100P. The market equilibrium quantity is
a. 400 b. 450 c. 500 d. 550
Economists view free trade as a way to raise living standards both at home and abroad
a. True b. False Indicate whether the statement is true or false