For a firm in a perfectly competitive market, a price decrease:

A. lowers the profit-maximizing quantity.
B. is unrelated to the profit-maximizing quantity.
C. increases the profit-maximizing quantity.
D. signifies the firm should leave the market.

Answer: A

Economics

You might also like to view...

An increase in physical capital or a technological advance

A) raises the real wage rate. B) decreases the quantity of labor employed. C) shifts the production function downward. D) decreases demand for labor.

Economics

Using a figure show that under full employment, a temporary fiscal expansion would increase output (over-employment) but cannot increase output in the long run

What will be an ideal response?

Economics