If the Market Price for a Competitive Firm's Output Doubles

Multiple Choice

If the market price for a competitive firm's output doubles, then:

A) the profit maximizing output will double.
B) the marginal revenue doubles.
C) at the new profit maximizing output, price has increased more than marginal cost.
D) at the new profit maximizing output, price has risen more than marginal revenue.
E) competitive firms will earn an economic profit in the long-run.