A Competitive Firm Has Been Selling Its Output for $10

question 319

Multiple Choice

A competitive firm has been selling its output for $10 per unit and has been maximizing its profit. Then, the price rises to $14, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its

• A)marginal revenue is lower than it was previously.
• B)marginal cost is lower than it was previously.
• C)quantity of output is higher than it was previously.
• D)All of the above are correct.

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Definitions:

Photocopier Maintenance

The routine checking and servicing of photocopying machines to ensure their proper functioning and longevity.

Business Products

Goods and services that are purchased for the purpose of being used in the production of other goods and services, to support daily operations or for resale.

Oral Contraceptives

Medications taken by mouth to prevent pregnancy, commonly referred to as birth control pills, which contain hormones to inhibit ovulation.

Hormonal Methods

involve the use of hormones to prevent pregnancy and can include birth control pills, patches, injections, and implants.