When a profit-maximizing firm in a competitive market experiences rising prices, it will respond with an increase in production.

Name: When a profit-maximizing firm in a competitive market experiences rising prices, it will respond with an increase in production.
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Question

Quizplus · Accepted Answer

In a competitive market, when prices rise, the profit margins on goods sold increase, incentivizing firms to produce more to take advantage of the higher prices and increase their profits.

When a Profit-Maximizing Firm in a Competitive Market Experiences Rising