Assume There Is an Increase in the Number of Consumers

question 39

Multiple Choice

Assume there is an increase in the number of consumers in the market for a good sold by perfectly competitive firms that are initially producing the profit-maximizing level of output.For the individual firm,this would result in:

• A)a decrease in both price and the profit-maximizing quantity of output.
• B)a decrease in price and increase in the profit-maximizing quantity of output.
• C)an increase in both price and the profit-maximizing quantity of output.
• D)an increase in price and decrease in profit-maximizing quantity of output.

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Definitions:

Luteinizing Hormone

A hormone produced by the pituitary gland that plays a key role in the reproductive system, triggering ovulation in females and testosterone production in males.

Ureter

A pair of muscular tubes that transport urine from the kidneys to the bladder in the urinary system.

Kidney

Organ of the vertebrate urinary system that filters and adjusts the composition of blood, and produces urine.

Urethra

A tube that connects the urinary bladder to the urinary orifice for the removal of fluids from the body.