Refer to the graph shown. If market price decreases from $7.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will:
A) increase output from 650 to 750.
B) decrease output from 850 to 750.
C) continue to produce 850 units.
D) produce 850 units of output.

Question

Refer to the graph shown. If market price decreases from $7.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will: 
A) increase output from 650 to 750. 
B) decrease output from 850 to 750. 
C) continue to produce 850 units. 
D) produce 850 units of output.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. If market price decreases from $7.00 per unit to $6.00 per unit, a profit-maximizing perfectly competitive firm will: 
A) increase output from 650 to 750. 
B) decrease output from 850 to 750. 
C) continue to produce 850 units. 
D) produce 850 units of output.

Refer to the Graph Shown