Exhibit 8-12
-If the market price rises, the profit maximizing level of output in Exhibit 8-12 will

Question

Exhibit 8-12 
-If the market price rises, the profit maximizing level of output in Exhibit 8-12 will

Quizplus · Accepted Answer

If the market price rises, the marginal revenue curve will shift upward. At the profit maximizing level of output, marginal revenue equals marginal cost. Thus, with a higher market price, the profit maximizing level of output must increase to produce more units and take advantage of the higher price.

Exhibit 8-12 -If the Market Price Rises, the Profit Maximizing Level of Maximizing