What is the usual response of firm to an increase in the price of what they sell?
A)An increase in output.
B)An increase in hiring factors of production.
C)An increase in the profit level of the firm.
D)An increase in employment at the firm.
E)All of the above.

Question

Quizplus · Accepted Answer

When the price of a firm's product increases, the firm typically responds by increasing output to maximize revenue, which often requires hiring more factors of production and increasing employment, leading to higher profit levels.

What Is the Usual Response of Firm to an Increase