Refer to the information provided in Figure 15.6 below to answer the question(s) that follow.
Figure 15.6Refer to Figure 15.6. If Trollio?s T-shirts is producing the quantity where MR = MC and selling each T-shirt at the price where D = ATC, then in the long run this firm should ________ the selling price and ________ quantity.
A. increase; increase
B. decrease; increase
C. increase; decrease
D. not change; not change
Answer: D
You might also like to view...
The above figure illustrates the demand curve for a good. The good has
A) no substitutes. B) only one substitute. C) only a few substitutes. D) many substitutes.
Suppose people value clean air more as their incomes increase. What would happen to the optimal amount of clean air as a country develops economically? Is there an economic prediction we can make from this?
What will be an ideal response?
What is the difference between a tariff and a quota?
Refer to the graph shown. If this monopolist charges a price of $8 for its product, it:
A. maximizes profit. B. incurs losses. C. can increase profits by increasing output. D. earns zero economic profits.