Refer to the Information Provided in Figure 10

Multiple Choice

Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. Figure 10.2
-Refer to Figure 10.2. This firm's marginal cost curve has shifted from MC₀ to MC₁. A profit-maximizing firm should ________ the amount of output produced and ________ its demand for labor.

A) increase; increase
B) increase; decrease
C) decrease; decrease
D) keep constant; increase