Use the figure to answer the following question(s).
Figure 9-6
-If the market price in Figure 9-6 increases to $20, what should the firm do?

Name: Use the figure to answer the following question(s). Figure 9-6 -If the market price in Figure 9-6 increases to $20, what should the firm do?
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Question

Use the figure to answer the following question(s).
Figure 9-6 
-If the market price in Figure 9-6 increases to $20, what should the firm do?

Quizplus · Accepted Answer

If the market price increases to $20, the firm should expand output to the level where marginal cost equals the new market price, which is likely at an output of 20.

Use the Figure to Answer the Following Question(s)