Management gets two numbers (price and quantity) from one decision because
A)the marginal utility of goods is fixed.
B)producers use both technical and financial information.
C)the demand curve consists of price and quantity pairs.
D)the average cost curve has only one low point.

Question

Quizplus · Accepted Answer

The demand curve consists of price and quantity pairs, which means that changes in price will lead to changes in quantity demanded, and changes in quantity demanded will lead to changes in price. Therefore, to make a decision that maximizes profits, management needs to consider both the price and quantity of the goods being produced/sold.

Management Gets Two Numbers (Price and Quantity) from One Decision