The Graph Below Shows Demand and Marginal Cost for a Perfectly

question 80

Multiple Choice

The graph below shows demand and marginal cost for a perfectly competitive firm.If the firm is producing 300 units of output,decreasing output by one unit would ______ the firm's profit by $______.

• A)decrease,$2
• B)increase,$2
• C)increase,$3
• D)decrease,$5
• E)increase,$5

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Definitions:

Parties

Organized groups that subscribe to a specific set of political, economic, or social principles, often engaging in political or social activities.

Benefit

An advantage or profit gained from something, such as a product, service, or activity.

Tennis Racket

A sports equipment used to strike a tennis ball in games of tennis.

Transaction

A transaction is an agreement between a buyer and a seller to exchange goods, services, or financial instruments.