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An Increase in the Price That a Price Taker Receives

Question 51

Multiple Choice

An increase in the price that a price taker receives for its output will cause the firm to


A) increase output and earn a higher profit or a smaller loss.
B) increase output and reduce fixed cost.
C) leave output unchanged and reduce fixed cost.
D) leave output unchanged and earn a higher profit or a smaller loss.
E) decrease output and earn a higher profit.

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