Do price reductions always result in higher profits

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Do price reductions always result in higher profits? For example, if the demand for a firm's product is price inelastic, will the firm increase its profits by cutting its price? Explain.

Reference no: EM131092333

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Do price reductions always result in higher profits : Do price reductions always result in higher profits? For example, if the demand for a firm's product is price inelastic, will the firm increase its profits by cutting its price? Explain.

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