Solved

If PY Increases and Costs of Production Remain Unchanged, the Profit-Maximizing

Question 3

Multiple Choice

If PY increases and costs of production remain unchanged, the profit-maximizing firm will:


A) decrease output because it costs more to produce each unit of output
B) will increase output until the new MR is equal to the MC
C) will use the same level of inputs
D) will produce the same amount of output since the firm is a price taker and can not affect market prices

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents