Multiple Choice

-Refer to the information above.If the output price is 50 cents and rent increases from $75 to $100,the price taker will
A) reduce output because marginal cost has fallen.
B) increase output because marginal cost has fallen.
C) reduce output because marginal cost has risen.
D) increase output because marginal cost has risen.
E) leave output unchanged because marginal cost is unchanged.
Correct Answer:
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