Suppose the Christmas trees market is perfectly competitive. An owner is currently earning a profit of $1,000, the cost of producing and selling an additional Christmas tree is $25, the current market price is $20. The owner

A) should sell more trees.
B) should not sell more trees.
C) should advertise in the market to promote his sales.
D) is not maximizing his profits.

B

Economics

You might also like to view...

One reason people store wealth is to help smooth consumption over time

Indicate whether the statement is true or false

View
Economics

The cost-output elasticity can be written and calculated as

A) MC/AC. B) AC/MC. C) (AC)(MC). D) (AC)2(MC). E) (AC)(MC)2.

View
Economics