The Figure Given Below Shows the Revenue and Cost Curves

question 50

Multiple Choice

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-In a perfectly competitive industry, the price of good A is $2. If a firm in this industry decides to increase its price to $2.50, it will:

• A)realize an increase in profit of $0.50 per unit output.
• B)be able to increase the quantity sold of good A.
• C)be unable to sell any quantity of good A that is produced.
• D)lose some of its customers in the market.
• E)experience a decrease in profit of $0.50 per unit output.

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Definitions:

Private Speech

Talking aloud to oneself with no intent to communicate with others.

Egocentrism

A cognitive characteristic of young children's thought, where they have difficulty understanding perspectives other than their own.

Piaget

Refers to Jean Piaget, a Swiss psychologist known for his pioneering work in the study of child development and his theory of cognitive development.

Vygotsky

A Russian psychologist known for his work on cognitive development, particularly his theory on the social development of children and the importance of cultural and interpersonal interactions.