Mossfeet Shoe Corporation is a single product firm.The company is predicting that a price increase next year will not cause unit sales to decrease.What effect would this price increase have on the following items for next year?

Question

Quizplus · Accepted Answer

Since unit sales are not predicted to decrease, the price increase will result in an increase in total revenue for the company. However, there may be some impact on the company's profits depending on the extent of the price increase and any accompanying changes in costs.

Mossfeet Shoe Corporation Is a Single Product Firm