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:

Basic To Survival

Fundamental needs or activities that are essential for an entity's continued existence and prosperity.

Safety Needs

Second level in Maslow's hierarchy of needs, regarding an individual's requirement for security, protection, and stability in their environment.

Health Insurance Policy

A contract that requires an insurer to pay some or all of a person’s healthcare costs in exchange for a premium.

Physiological Needs

Basic human requirements for survival, such as food, water, shelter, and sleep, situated at the bottom of Maslow's hierarchy of needs.