The Graph Below Shows Demand and Marginal Cost for a Perfectly

question 58

Multiple Choice

The graph below shows demand and marginal cost for a perfectly competitive firm.If the firm is producing 100 units of output,increasing output by one unit would ______ the firm's profit by $______.

• A)increase,$3
• B)increase,$2
• C)decrease,$1
• D)increase,$1
• E)decrease,$2

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Definitions:

Control Group

A group in an experiment that does not receive the treatment or intervention and is used as a benchmark to measure how the other tested subjects do.

Fake Cigarettes

Products designed to mimic the appearance and sometimes the sensation of smoking tobacco, often used as aids to quit smoking.

Placebo

An inert substance or treatment with no therapeutic value, used in the control group of an experiment.

Antianxiety Drug

Medication prescribed to relieve anxiety symptoms, often by affecting neurotransmitter levels in the brain, including benzodiazepines and SSRIs.