Essay
Answer the following questions based on the accompanying graph. 
a. What is the change in revenues associated with the price effect for this firm when the price decreases from $50 to $30?
b. What is the change in revenues associated with the output effect for this firm when the price decreases from $50 to $30?
c. Would the firm gain revenue if it lowered the price from $50 to $30? Explain.
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a. The price effect refers to how lower ...View Answer
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Correct Answer:
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