In arriving at the quantity of output and price of its product, a company
A)chooses both price and quantity, since it understands its demand relationship.
B)cannot set price or quantity; this is done by the market.
C)makes two separate decisions about quantity and product price.
D)can set price but quantity is determined by market demand.

Question

Quizplus · Accepted Answer

A company can set the price of its product, but the quantity sold is determined by the market demand at that price.

In Arriving at the Quantity of Output and Price of Its