Question

ue or False: If Dmitri's Fire Engines were a competitive firm instead and $75,000 were the market price for an engine, decreasing its price from $75,000 to $50,000 would result in a decrease in the production quantity, but an increase in total revenue.

Answer 1

Answer:

False.

Explanation:

If Dmitri's Fire Engines were competitive firm instead of $100,000 were the market price for an engine, decreasing its price from $100,000 to $50,000 would result in a decrease in production quantity, but increase in total revenue. The statement is false.