If bob's fire engines were a competitive firm instead and $105,000 were the market price for an engine, increasing its production would not affect the price at which he can sell engines is true.
Market price is the current price at which an asset or service can be bought or sold. The market price of an asset or service is determined by the forces of supply and demand. The price at which the quantity supplied equals the quantity demanded is the market price.
Market price is used to calculate consumer and economic surplus. Consumer surplus refers to the difference between the highest price a consumer is willing to pay for a product and the actual price he pays for the product, or the market price. Economic surplus refers to two related quantities consumer surplus and producer surplus. Producer surplus can also be called profit. it is the amount that producers make by selling at the market price.
To learn more about market price, refer;
https://brainly.com/question/17205622
#SPJ1
