Increasing c while holding n constant decreases the producer's risk and increases the consumer's risk.

Question

Quizplus · Accepted Answer

Increasing c (cost of production) while holding n (number of units produced) constant would lead to a decrease in the producer's risk as they are able to offset the increase in cost by charging higher prices to consumers. However, this would increase the consumer's risk as they would be paying a higher price for the same product.

Increasing C While Holding N Constant Decreases the Producer's Risk