What might you expect to happen to profit maximizing output

Reference no: EM131919426

Problem

Suppose a firm is operating in a competitive market and is maximizing profit by producing at the point where marginal revenue 5 marginal cost. Now suppose that consumer wealth decreases in this market (and the good is a normal good). What might you expect to happen to the profit maximizing output quantity for the firm?

Reference no: EM131919426

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