How Much Revenue a Firm Brings in by Improving the Quality

Multiple Choice

How much revenue a firm brings in by improving the quality of a product such that more consumers want to buy it depends on which two factors?

A) The decrease in demand caused by the increase in quality and the incremental profit earned on each additional unit sold
B) The increase in demand caused by the increase in quality and the incremental profit earned on each additional unit sold
C) The increase in demand caused by the increase in quality and the incremental loss on each additional unit sold
D) The decrease in demand caused by the increase in quality and the incremental loss on each additional unit sold
E) The quality of changes to the original product and the decrease in demand cause by the changes in quality