Refer to the graph shown. Other things equal, an increase in the market price of this product will cause:
A. an increase in total revenue and a decrease in the firm's profit-maximizing level of output.
B. a decrease in total revenue and a decrease in the firm's profit-maximizing level of output.
C. a decrease in total revenue and an increase in the firm's profit-maximizing level of output.
D. an increase in total revenue and an increase in the firm's profit-maximizing level of output.
Answer: D
You might also like to view...
In Delaware County, Pennsylvania, all homes, businesses, and other organizations purchase their water from one seller, Philadelphia Suburban Water Co (PSWCo)
Economists refer to public utility companies like PSWCo as natural monopolies because their A) marginal cost curves lie everywhere beneath their average fixed cost curves. B) marginal cost curves lie everywhere beneath their demand curves. C) average total cost curves lie everywhere above their demand curves. D) None of the above answers is correct.
The balance of trade is defined as
A) the difference between the value of the goods and services a country exports and the value of the goods and services a country imports. B) the difference between the balance of the current account and the balance of the capital account. C) the difference between the balance of the current account and the balance of the financial account. D) the difference between the value of the goods a country exports and the value of the goods a country imports.
Why do most large firms incorporate rather than operate as sole proprietorships or partnerships?
Because people are more health conscious today than ever before, the demand for French fries has steadily fallen, causing the wage rate
a. and employment of workers in the French fries labor market to fall b. and employment of workers in the French fries labor market to rise c. to rise and employment of workers in the French fries labor market to rise d. to fall and employment of workers in the French fries labor market to rise e. to fall because both the labor demand and supply curves to shift to the right