The Figure Given Below Shows the Revenue and Cost Curves

Multiple Choice

The figure given below shows the revenue and cost curves of a firm. MC represents the marginal cost curve, AC the average cost curve, MR the marginal revenue curve, and AR the average revenue curve.Figure 9.4

-In a perfectly competitive industry, the price of good A is $2. If a firm in this industry decides to increase its price to $2.50, it will:

A) realize an increase in profit of $0.50 per unit output.
B) be able to increase the quantity sold of good A.
C) be unable to sell any quantity of good A that is produced.
D) lose some of its customers in the market.
E) experience a decrease in profit of $0.50 per unit output.