A company's management team sets a strategic goal to maximize profits by simultaneously raising the price of its main product and increasing the number of units it sells. From an economic standpoint, what is the primary reason this dual objective is fundamentally unachievable?
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Ch.6 The firm and its employees - The Economy 2.0 Microeconomics @ CORE Econ
Ch.7 The firm and its customers - The Economy 2.0 Microeconomics @ CORE Econ
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A profit-maximizing firm's choice of price and quantity is only limited by its production costs, meaning it can independently set a high price and also decide to produce a large quantity to sell at that price.