Answered: The firm raises prices. Quantity…

The firm raises prices. Quantity demanded in the short-run is unaffected, but in the long-run unit sales is expected to decline. what is the effect of this in firm value?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter24: Perfect Competition

Section: Chapter Questions

Problem 3E

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The firm raises prices. Quantity demanded in the short-run is unaffected, but in the long-run unit sales is expected to decline. what is the effect of this in firm value?

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