As the price of a good rises:
A)firms earn larger profits.
B)more firms can cover their opportunity costs of producing the good.
C)firms find they can raise price by even more.
D)government regulation becomes more justified.

Question

Quizplus · Accepted Answer

When the price of a good rises, more firms can cover their opportunity costs of producing the good. This means that more firms can make a profit by producing the good at the higher price.

As the Price of a Good Rises