Question

Musashi Should not increase production from 7 to 8 fire engines. True or False: If Musashi's Fire Engines were a competitive firm instead and $175,000 were the market price for an engine, decreasing its price from $175,000 to $150,000 would result in an increase in production quantity and total revenue.

Answer 1

b)False

Misashi should production engines to be more competitive in the market as market price is decreasing per engine,and it should purchase more engine.