A Competitive Firm Has Been Selling Its Output for $10

question 198

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,which of the following statements is correct?

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

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Definitions:

Motivational Level 3

A conceptual stage in motivational theory where individuals show higher readiness and commitment to change.

Relationship-Building Process

The development of connections or rapport between individuals through communication, understanding, and mutual respect.

Action Stage

A phase in the process of change where individuals are actively implementing strategies and taking steps to modify their behavior.

Expressing Support

The act of showing encouragement or backing for someone's ideas, goals, or challenges through verbal or nonverbal communication.