Managers of firms with market power should be cautious not to ________when they are earning ________economic profit.

Question

Quizplus · Accepted Answer

Managers of firms with market power should be cautious not to overexpand when they are earning positive economic profit because expanding too much can lead to increased costs and potentially reduce the per-unit profitability, especially if the market does not support the expanded production or service level.

Managers of Firms with Market Power Should Be Cautious Not