Refer to the Following Figure

question 85

Multiple Choice

Refer to the following figure:

The graph shows demand and marginal cost for a perfectly competitive firm.
-If the firm is producing 100 units of output, increasing output by one unit would ______ the firm's profit by $______.

• A) increase, $3
• B) increase, $2
• C) decrease, $1
• D) increase, $1
• E) decrease, $2

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Definitions:

C.O.D. Shipment

Cash on Delivery Shipment - A transaction in which payment for a good is made at the time of delivery rather than in advance.

Non-conforming Goods

Non-conforming goods are products delivered to a buyer that do not meet the specifications or quality standards agreed upon in a contract of sale.

Claim

A demand or request for something considered due, such as money, property, or enforcement of a legal right.

UCC Article 2

UCC Article 2 pertains to the sale of goods within the United States, setting forth the rights, responsibilities, and obligations of buyers and sellers.