The Law of Supply states that when the market price ______,the profit-maximizing sales quantity for a price taking-firm never ______.

Question

Quizplus · Accepted Answer

According to the Law of Supply, when the market price increases, the profit-maximizing sales quantity for a price taking-firm decreases. This is because as the price increases, the marginal cost of producing each additional unit increases as well, leading to a lower quantity supplied. Therefore, option B is the correct answer.

The Law of Supply States That When the Market Price