In a perfectly competitive industry, the price of good A is $2 . If a firm in this industry decides to increase its price to $2.50, it will:
a. realize an increase in profit of $0.50 per unit output.
b. be able to increase the quantity sold of good A.
c. be unable to sell any quantity of good A that is produced.
d. lose some of its customers in the market.
e. experience a decrease in profit of $0.50 per unit output.
c
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In the table above, Y is measured along the y-axis and X along the x-axis. The slope between points e and f is
A) -25. B) 4. C) 0.25. D) -0.25.
HydroGrow is considering building a new greenhouse in which to grow tomatoes. The board meets and decides that this is the right thing to do. Before they can put their plans into action, the interest rate increases. The present value of the returns from this investment project
a. is now lower than it was before, and so Hydro Grow is less likely to build the building. b. is now lower than it was before, and so HydroGrow is more likely to build the building. c. is now higher than it was before, and so HydroGrow is less likely to build the building. d. is now higher than it was before, and so HydroGrow is more likely to build the building.