In Figure 17-4,below,initial Demand,marginal Cost,and Marginal Revenue Curves (None of Them

Multiple Choice

In Figure 17-4,below,initial demand,marginal cost,and marginal revenue curves (none of them shown) caused the firm to produce the profit-maximizing quantity Y₀ at a price of P₀.Now the demand and marginal cost curves have moved to those shown,with the marginal revenue curve running through point L.
Figure 17-4

-If the firm in Figure 17-4 above maintains its set price of P₀,rather than dropping price to P₁,it must be facing a "menu cost" of adjusting its price that exceeds

A) K - G.
B) K + G.
C) G - K.
D) J.
E) K.