Multiple Choice
Would a profit-maximizing firm sell where demand is inelastic?
A) No, this would not follow the rule of MC = MR.
B) No, the firm could not profitably raise price.
C) Yes, the firm could profitably lower price to attract sales.
D) Yes, in this case there are few substitutes for the good.
Correct Answer:
Verified
Correct Answer:
Verified
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