When a profit-maximising firm in a competitive market experiences rising prices, it will respond with an increase in production.

Name: When a profit-maximising firm in a competitive market experiences rising prices, it will respond with an increase in production.
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Question

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When prices rise in a competitive market, the firm can sell more units at a higher price. To take advantage of the higher prices, the firm will increase its production to increase its profits.

When a Profit-Maximising Firm in a Competitive Market Experiences Rising