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:

Archie Carroll

A scholar known for his work on corporate social responsibility (CSR) and the pyramid model that defines the responsibilities of businesses.

Enduring Change

Long-lasting or permanent transformation within an organization or individual, which can be a result of deliberate actions or external factors.

Behavior

Refers to the actions or reactions of individuals or groups in response to external or internal stimuli.

Emotional Intelligence

The skill of recognizing, utilizing, and controlling one's emotions constructively to reduce stress, engage in effective communication, sympathize with others, and navigate obstacles.