Why Would a Profit-Maximising Firm in a Competitive Market Set

question 136

Multiple Choice

Why would a profit-maximising firm in a competitive market set a price higher than the market price?

• A)if this would result in higher profits
• B)if the firm's costs had increased
• C)if this would increase the firm's market share
• D)none of the above

---

Definitions:

Torque Converters

A device in an automatic transmission that transfers rotating power from the engine to the transmission by using a fluid coupling.

Gear Shifting

The process of changing gears in a vehicle's transmission to optimize performance and fuel efficiency or adapt to driving conditions.

Type B

Often refers to a classification or category in various contexts, such as blood type, personality theories, or safety levels in equipment standards, requiring specifics to define completely.

Emissions Related

Pertains to components or systems in a vehicle that affect the type and amount of pollutants released into the environment.