When the Demand Curve Is Vertical and the Supply Curve

Multiple Choice

When the demand curve is vertical and the supply curve is upward sloping,:

A) a rise in the input price that increases marginal cost by $1, decreases the firm's profit by $1.
B) a drop in the input price that lowers the marginal cost by $1, doubles the firm's profit.
C) a drop in the input price that lowers the marginal cost by $1, decreases the output price by $1.
D) a rise in the input price that increases the marginal cost by $1, doubles the output price.