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12 October, 03:32

The price of blue widgets rises to $6. Assuming that all other factors remain the same, how should the factory respond to this increase of price?

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  1. 12 October, 07:05
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    Assuming that all other factors remain the same, the factory should also increase the price of their end product.

    If the company does not do this, they will experience a $6 margin loss for every product that they sold. If they sold hundredth of thousands amount of products, the accumulation would be big enough to cause financial problems for the company.
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