An important assumption that is made when constructing a supply schedule is
a. only price and quantity matter in determining supply.
b. firms always want to sell a certain amount of a product.
c. supply is too important to be left to the marketplace.
d. all other determinants of supply are held constant.
e. demand has a positive slope.
d
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Which of the following is true
a. Increasing output always leads to increase in profits b. Increasing outputs increase profits if price is above marginal cost c. Increasing output increases profits if price is lea than marginal costs d. Increasing output always decreases profits
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBWhat is the profit-maximizing price?
A. $9.50 B. $7 C. $8 D. $9 E. none of the above