Jonathan Gold Miners & Co operates in a perfectly competitive market. In recent years, it has benefitted from a record rise in gold prices as the price of its output is highly influenced by market speculation. It buys its inputs from perfectly competitive resource markets. If it wants to take advantage of the rise in gold prices, it should:
a. increase its production and accept the market price
for its physical capital inputs.
b. increase its price to a level where it is higher than its marginal revenue.
c. reduce its production to encourage speculators to drive gold prices higher.
d. negotiate to reduce the wage rate of its labor inputs to maximize profits.
a
Economics
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