Refer to the Graph Shown

question 136

Multiple Choice

Refer to the graph shown. Other things equal, an increase in the market price of this product will cause:

• A)an increase in total revenue and a decrease in the firm's profit-maximizing level of output.
• B)an increase in total revenue and an increase in the firm's profit-maximizing level of output.
• C)a decrease in total revenue and a decrease in the firm's profit-maximizing level of output.
• D)a decrease in total revenue and an increase in the firm's profit-maximizing level of output.

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Definitions:

Statistical Discrepancy

The difference between two figures that are expected to be equivalent, often arising from timing or measurement errors in data collection.

GDP

A metric for evaluating the economic success of a nation, Gross Domestic Product calculates the overall value of goods and services generated over a designated period.

GNP

Gross National Product; the total value of goods produced and services provided by a country during one year, including net income from abroad.

Net Factor Payments

The difference between the payments made to factors of production from abroad and the payments made to foreign factors of production domestically.