If a firm faces _______, while the prices for the output the firm produces remain unchanged, a firm's profits will increase.
A) higher demand
B) lower costs of production
C) equilibrium
D) a shift in demand

Question

Quizplus · Accepted Answer

Lower costs of production directly increase a firm's profits if the prices for the output remain unchanged, as the firm can produce the same amount of goods for less money, improving its profit margin.

If a Firm Faces _______, While the Prices for the Output