20
QuizMultiple Choice

The Economy of the US — Unit test

Question 20 • EA Academy Civics 9

The price for which Company X can sell its product drops from $10 to $6, which is less profitable. What will the company most likely do?

Answer
A
increase production
B
decrease production
C
maintain production
D
stop all production

Explanation

When the selling price falls from $10 to $6, each unit brings in less revenue, so producing the same amount is likely less profitable. The company will most likely decrease production to limit its losses or protect its profit. Stopping all production is not necessarily warranted by a lower price alone.

AI-written and checked against the verified answer.

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