-In the Above Figure, If the Firm Increases Its Output

question 357

Multiple Choice

-In the above figure, if the firm increases its output from Q₁ to Q₂, it will

• A) reduce its marginal revenue.
• B) increase its marginal revenue.
• C) decrease its profit.
• D) increase its profit.

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Definitions:

Informational Social Influence

The influence of others that leads an individual to conform because they believe the group is competent and has the correct information, especially in ambiguous situations.

Normative

Relating to an ideal standard or model, or being based on what is considered to be the normal or correct way of doing something.

Perceptual

Relating to the ability to interpret or become aware of something through the senses.

Disruptive

Causing or tending to cause disruption; interrupting the normal course or unity of something, often leading to innovation or change.