(a) Assume the firm produces 16 units. Will the firm's economic profit be positive, negative, or zero? Explain. (b) If the firm charges $36, should this firm increase its price, decrease its price, or keep the price at $36 in order to maximize its total revenue? Explain. (c) If the firm increases its price from $36 to $42, does the deadweight loss increase, decrease, or remain unchanged? Explain.

(a) Assume the firm produces 16 units. Will the firm's economic profit be positive, negative, or zero? Explain. (b) If the firm charges $36, should this firm increase its price, decrease its price, or keep the price at $36 in order to maximize its total revenue? Explain. (c) If the firm increases its price from $36 to $42, does the deadweight loss increase, decrease, or remain unchanged? Explain.

Principles of Economics (MindTap Course List)

8th Edition

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Firms In Competitive Markets

Section: Chapter Questions

Problem 4PA

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