If Van's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. A. True

B. False

Question

Buckley

Business

13 January, 15:22

If Van's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. A. True

B. False

+5

Answers (1)

Know the Answer?

Kathy Moss · Answer 1

The given statement is False.

Explanation:

If Van's Fire Engines was a competitive firm and would have increased the production of engines, the fixed costs associated will be allocated to more units and will result in a lower cost per engine produced as compared to the less production of units. Therefore Van's Fire Engines will be able to sell engines at a lower price.

If Van's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. A. TrueB. False

If Van's Fire Engines were a competitive firm instead and $100,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines. A. True

B. False