Refer to the above figure. The firm is operating using MRP0. An increase in demand for the product has occurred. The relevant curve for the firm after the increase in price
A) is MRP0.
B) is MRP1.
C) is MRP2.
D) could be MRP1 or MRP2 depending upon whether the firm was earning a positive profit.
C
You might also like to view...
Which of the following is a problem with or a limit on antitrust policy?
a. Competition may not require that many firms b. Abuse of antitrust c. Growth of international markets d. Growing doubt about the economic value of lengthy antitrust court cases e. All of the answers are correct
The effect on business of the crowding-out effect in the short run would be reflected by ______.
Fill in the blank(s) with the appropriate word(s).
Suppose over the next several years the productivity of firms producing electric cars improves dramatically. The advance in productivity leads to
A) a decrease in the supply of electric cars so that the supply curve shifts rightward. B) an increase in the supply electric cars so that the supply curve shifts rightward. C) an increase in the supply of electric cars so that the supply curve shifts leftward. D) a decrease in the supply of electric cars so that the supply curve shifts leftward. E) no change in the supply of electric cars, only a change in the quantity supplied of electric cars.
A cost that has already been made and cannot be recovered is called a
A) variable cost. B) fixed cost. C) sunk cost. D) marginal cost.