Ask Question
Today, 08:38

Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing level of output. For the individual firm, this would result in:

+3
Answers (1)
  1. Today, 12:14
    0
    Answer: Fall in revenue

    Explanation:

    A decrease in demand means a lower level of demand compare to the previous period. A price taking firm means that the firm cannot determine the price in the market. Profit maximising level of output means the output level that gives the highest profit.

    A fall in demand without an increase in price at a profit maximising level of output will lead to a fall in revenue and profit all things being equal.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume there is a decrease in the market demand for a good sold by price-taking firms that are initially producing the profit-maximizing ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers