Competitive firms will always try to earn more than a normal profit by doing the following except
A) adopting better production technology.
B) improving their business organization and operation.
C) developing new products.
D) raising the prices of their existing products.

Question

Quizplus · Accepted Answer

Competitive firms will try to earn more than a normal profit by adopting better production technology, improving their business organization and operation, and developing new products. However, raising the prices of their existing products may not always be a viable strategy as it may result in loss of customers to competitors who offer similar products at lower prices. Hence, D is the correct answer.

Competitive Firms Will Always Try to Earn More Than a Normal