Multiple Choice
What will occur if a firm expects that the price of its product will be higher in the future than it is today?
A) The firm will go out of business.
B) The firm will have an incentive to increase supply now and decrease supply in the future.
C) The firm will have an incentive to decrease quantity supplied now and increase quantity supplied in the future.
D) The firm will have an incentive to decrease supply now and increase supply in the future.
Correct Answer:
Verified
Correct Answer:
Verified
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