Multiple Choice
-Refer to the above figure. If an individual firm wants to maximize economic profits, it should
A) charge $5 for its product.
B) charge more than $5 for its product since increasing the price will increase revenues.
C) charge less than $5 for its product since a lower price will attract more customers.
D) withdraw its product from the market forcing the market price up.
Correct Answer:

Verified
Correct Answer:
Verified
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