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:

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of loose connective tissue and fat, providing insulation and energy storage.

Subcutaneous Layer

The innermost layer of the skin, consisting of fat and connective tissues, that provides insulation and cushioning to the body.

Stratum Corneum

The outermost layer of the epidermis, consisting of dead cells that provide a barrier to infection and reduce water loss.

Melanin Production

The biological process responsible for the generation of melanin, a pigment that determines the color of skin, hair, and eyes.