Suppose the equilibrium price in a competitive price-taker market is $10 and a firm in the industry charges $9 . Which of the following is true?
a. The firm will not be able to sell any output.
b. The firm will sell less output than its competitors.
c. The firm will make more profit than it could at the $10 price.
d. The firm will make less profit than it could at the $10 price.
D
Economics
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The _____________________ is the effect of a change in the price of an input on the firm's relative use of the input to produce a given level of output
Fill in the blank(s) with the appropriate word(s).
Economics
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Show what happens to the person's labor supply curve when the income tax is cut from 70 percent to 30 percent
Denote hours worked as H and wage per hour as w.
Economics