Suppose a Price Taker Is Collecting $1,999 in Total Revenue

question 31

Multiple Choice

Suppose a price taker is collecting $1,999 in total revenue and the total cost of its fixed factors of production decreases from $500 to $400.One can speculate that the firm will

• A) increase output.
• B) lower its price.
• C) earn a higher profit or a smaller loss.
• D) decrease output.
• E) earn a smaller profit or a greater loss.

---

Definitions:

Products and Services

Goods that are manufactured or created for sale, and activities or benefits offered for consumption, respectively.

Supply Partnerships

Collaborative agreements between companies and their suppliers aimed at optimizing costs, quality, and supply chain efficiency.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.