-If the market price for this product were $1.00:
A) the firm would minimize its loss by producing 1,500 units of output.
B) the firm would minimize its loss by producing 3,000 units of output.
C) the firm would maximize its profit by producing the largest output its facilities would allow.
D) the profit-maximizing or loss-minimizing output for the firm would be the same as it is at a price of $2.50.

Question

-If the market price for this product were $1.00:
A) the firm would minimize its loss by producing 1,500 units of output. 
B) the firm would minimize its loss by producing 3,000 units of output. 
C) the firm would maximize its profit by producing the largest output its facilities would allow. 
D) the profit-maximizing or loss-minimizing output for the firm would be the same as it is at a price of $2.50.

Quizplus · Accepted Answer

The Answer of 
-If the market price for this product were $1.00:
A) the firm would minimize its loss by producing 1,500 units of output. 
B) the firm would minimize its loss by producing 3,000 units of output. 
C) the firm would maximize its profit by producing the largest output its facilities would allow. 
D) the profit-maximizing or loss-minimizing output for the firm would be the same as it is at a price of $2.50.

-If the Market Price for This Product Were $1