What are the two critical questions a firm must answer?

Business Dec 25, 2020

Expert Solution

The two critical questions that a firm must answer include the price to be charged to the goods offered and the quantity of goods produced. Moreover, a firm maximizes profit by selling services and goods at a higher price than the cost incurred. Additionally, a firm produces goods and services according to the current demand in the market. For instance, when the demand is high, it produces higher amounts, while decreased demands reduce the quantity supplied.

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