Multiple Choice
Suppose a firm notices that the price it faces has doubled, but it does not change its level of output. It must be the case that
A) profits have doubled
B) the marginal cost curve is falling
C) total revenue has decreased
D) the original price was less than half of the minimum of the AVC curve
E) this situation would not really occur
Correct Answer:
Verified
Correct Answer:
Verified
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