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

Economics

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