The Figure Given Below Represents a Firm in a Market

question 11

Multiple Choice

The figure given below represents a firm in a market characterized by many buyers and one seller.MC represents the marginal cost, MR the marginal revenue, and D the demand curve of a firm.The firm is initially in equilibrium producing 6 units of output at a price of $10 per unit.


-Refer to Figure .Suppose the adoption of a new cost saving technology lowers marginal cost by $2 although the buyer's valuation remains unchanged.This allows the firm to produce 8 units of output at a price of $8 per unit.The profit earned by the firm will:

• A)increase by $10.
• B)decrease by $5.
• C)remain unchanged.
• D)increase by $5.

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Definitions:

College Degrees

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Proportion

The relationship between parts of a whole, expressed as a ratio or fraction that denotes the comparative quantity of one thing relative to another.

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The process of completing a course of study at a school, college, or university, culminating in the achievement of a diploma or degree.

Employment Discrimination

Unfair or unequal treatment of employees based on race, gender, religion, nationality, physical or mental disability, or age.