In the above figure, by increasing its output from Q1 to Q2, the firm
A) reduces its marginal revenue.
B) increases its marginal revenue.
C) decreases its profit.
D) increases its profit.
D
Economics
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In the circular flow model, profits are considered to be
A) a cost of doing business. B) equal to zero, or else the circular flow would be out of balance. C) a subtraction from the Gross Domestic Product (GDP). D) a form of interest payment.
Economics
The above figure shows the long-run expansion path. The long-run average cost curve will be
A) horizontal. B) downward sloping. C) upward sloping. D) vertical.
Economics