A Firm in Competitive Price-Taker Market Is Maximizing Profit at Q

question 35

Multiple Choice

A firm in competitive price-taker market is maximizing profit at Q = 3,000. Then its fixed cost increases. The profit-maximizing output is now

• A) greater than 3,000 and profit decreases
• B) less than 3,000 and profit decreases
• C) greater than 3,000 and profit is unchanged
• D) equal to 3,000 and profit decreases
• E) equal to 3,000 and profit increases

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Definitions:

Competitive Sales Position

The strategic standing of a product or service in the marketplace as compared to its competitors, often determined by factors like price, quality, and brand loyalty.

Workload Method

A formula-based method for determining the size of a salesforce that integrates the number of customers served, call frequency, call length, and available selling time to arrive at a figure for the salesforce size.

Formula-Based Method

A systematic approach to problem-solving or decision-making that uses a specific mathematical formula to determine outcomes.

Salesforce Size

The number of individuals in a company's sales team, which can impact the firm's ability to reach potential customers and achieve sales targets.