Solved

The Figure Given Below Shows the Revenue and Cost Curves

Question 71

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1    -Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's: A) supply curve would shift outward and the firm would increase output. B) supply curve would shift inward and the firm would decrease output. C) average-total-cost curve would shift upward and the firm would increase output. D) marginal-revenue curve would shift upward and the firm would increase output. E) marginal-revenue curve would shift downward and the firm would decrease output.
-Suppose that in a perfectly competitive market, the market supply of a good increases. As a result, the individual firm's:


A) supply curve would shift outward and the firm would increase output.
B) supply curve would shift inward and the firm would decrease output.
C) average-total-cost curve would shift upward and the firm would increase output.
D) marginal-revenue curve would shift upward and the firm would increase output.
E) marginal-revenue curve would shift downward and the firm would decrease output.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions