A Firm May Choose to Raise Price When

question 103

Multiple Choice

A firm may choose to raise price when

• A)profits would increase at the higher price.
• B)MR > MC.
• C)average profit is zero.
• D)it relies on marginal analysis.

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Definitions:

Dimethyl Ether

An organic compound with the formula CH3OCH3, used as an aerosol spray propellant and a refrigerant.

Boiling Point

The temperature at which a liquid turns to vapor, specific to each substance under given pressure conditions.

Diethyl Ether

A highly volatile and flammable ether used as a solvent and formerly as an anesthetic.

Butan-1-ol

A primary alcohol with the formula C4H9OH, where the hydroxyl group is attached to the first carbon of a four-carbon chain.