Skip to content
MathsGenie logo
Open app

Course home

  1. A Level
  2. Economics AQA
  3. Question bank

1.3 Price determination in a competitive market

EasyMediumHard
123456789101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354
Question 26

A monopolistically competitive firm faces a demand curve for its organic coffee beans that has a price elasticity of demand of minus 1.0 throughout its entire range. All other things being equal, which one of the following is most likely to result in an increase in the firm's profits?

A decrease in the cost of producing the coffee beans

A decrease in the price of the coffee beans

An increase in the price of the coffee beans

An increase in the scale of its production facilities

1.3 Price determination in a competitive market Questions

  1. A Level
  2. /Economics
  3. /1.3 Price determination in a competitive market