If an Increase in Production Costs (Say, an Increase in the Wage

Multiple Choice

If an increase in production costs (say, an increase in the wage rate) results in an upward shift in the MC curve, but the MC curve still passes through the MR gap created by the kinked demand curve, then the oligopolist will respond to that increase in production costs by

A) keeping price and output the same
B) raising price and decreasing output
C) lowering price and increasing output
D) raising price and raising output
E) lowering price and lowering output