Refer to the Accompanying Figure to Answer the Following Questions

question 84

Multiple Choice

Refer to the accompanying figure to answer the following questions.
For a firm in a competitive market,the demand curve is horizontal,as shown.

-What will happen if the firm offers its product at a price slightly above price P_C?

• A) The marginal revenue will drop below zero.
• B) The firm will slightly increase its profits.
• C) The sales volume will plummet to essentially zero.
• D) The firm will run into high barriers to exit from the market.
• E) The number of units sold will slightly increase.

---

Definitions:

Weight Loss Industry

A sector that includes businesses and services dedicated to helping individuals lose weight, often through products, programs, or diets.

Television Ads

Short segments aired on television designed to inform or persuade viewers regarding products, services, or ideas.

Cooperation

The process of working together towards a common goal, involving mutual assistance and collaboration.

Group Radio Show

A radio program hosted by several individuals, often discussing various topics or performing entertainment segments collaboratively.