If a firm's demand is random, the firm's price and profit are also random.

Question

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If a firm's demand is random, it means that the quantity demanded varies unpredictably over time. As a result, the price and profit of the firm would also fluctuate randomly. This is because the firm has little control over the demand for its products and may have to adjust prices or output levels in response to changing market conditions. Therefore, both price and profit would be subject to uncertainty and variation.

If a Firm's Demand Is Random, the Firm's Price and Profit