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The Figure Given Below Shows the Revenue and Cost Curves

Question 15

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The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.5    MC: Marginal cost curve MR: Marginal revenue curve.ATC: Average-total-cost curve AVC: Average-variable-cost curve -What causes the market supply curve to shift rightward? A) Increase in the aggregate demand B) Decrease in the number of existing firms C) Decrease in the price level D) Increase in the cost of production E) Entry of new firms MC: Marginal cost curve
MR: Marginal revenue curve.ATC: Average-total-cost curve
AVC: Average-variable-cost curve
-What causes the market supply curve to shift rightward?


A) Increase in the aggregate demand
B) Decrease in the number of existing firms
C) Decrease in the price level
D) Increase in the cost of production
E) Entry of new firms

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