Question

True or false: if hubert's fire engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price from $80,000 to $60,000 would result in the same change in production quantity and, thus, total revenue.

Answer 1

FALSE

because hubert being a competitive firm, if it decreases the price of engine, demand increases and thus production increases. Therefore revenue also increases.