If the Demand Curve Facing a Firm Shifts Outward,then

question 26

Multiple Choice

If the demand curve facing a firm shifts outward,then

• A)there is a decline in the maximum price the firm can charge at each quantity it may want to sell
• B)there is an increase in the maximum price the firm can charge at each quantity it may want to sell
• C)the firm would need to increase the quantity it wants to sell in order to generate a rise in the price
• D)the firm would need to decrease the quantity it wants to sell in order to generate a rise in the price
• E)there is a decrease in the maximum quantity the firm can sell at each price it may want to charge

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes as production volume changes.

Break-even Point

The point at which total costs and total revenues are equal, meaning a business or project is neither making a profit nor a loss.

Marginal Cost

The additional cost incurred from producing one more unit of a product or service, which can influence production decisions.

Marginal Revenue

The augmented income earned from trading one extra unit of a product or service.