If the Market Price for a Competitive Firm's Output Doubles

question 50

Multiple Choice

If the market price for a competitive firm's output doubles, then:

• A) the profit maximizing output will double.
• B) the marginal revenue doubles.
• C) at the new profit maximizing output, price has increased more than marginal cost.
• D) at the new profit maximizing output, price has risen more than marginal revenue.
• E) competitive firms will earn an economic profit in the long-run.

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Definitions:

Derived Demand

The demand for a resource; it stems from the demand for the final good the resource helps produce.

Input Demand

The requirement for resources and materials necessary to produce goods and services.

Output Demand

The quantity of a product or service that consumers are willing and able to purchase at various price points.

Immigration Effect

The impact that immigration has on a host country's economy, labor market, culture, and social fabric, both positive and negative.