If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.
If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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If a firm charges a lower
A. The firm should charge a lower price for the higher profit.
B. The firm should a higher price for the lower profit.
C. The firm should charge a higher price for the higher profit margin.
D. Whether the firm should charge a higher price or lower price indeterminate.
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