An Increase in Marginal Cost Causes a Profit-Maximizing,monopolistically Competitive Firm

question 16

Multiple Choice

An increase in marginal cost causes a profit-maximizing,monopolistically competitive firm to

• A) keep price and output the same.
• B) raise price and decrease output.
• C) lower price and increase output.
• D) raise price and raise output.
• E) lower price and lower output.

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