In response to an increase in the market demand, to maximize short- run profits, managers of perfectly competitive firms will _______ production and move______ along the marginal cost curve.

Question

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In response to an increase in market demand, managers of perfectly competitive firms will increase production to meet the higher demand and, as a result, move upward along the marginal cost curve to a new equilibrium point where marginal cost equals the new, higher market price.

In Response to an Increase in the Market Demand, to Maximize