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On the Graph, If the Oligopolist's MC Curve Shifts from MC

Question 233

Multiple Choice

  On the graph, if the oligopolist's MC curve shifts from MC ₁ to MC ₂, the firm will charge A) a higher price than before and total revenue will increase. B) the same price as before and sell more output; total revenue will increase. C) the same price as before and sell the same amount of output; total revenue will remain the same. D) a higher price than before and sell less output; it can't be determined whether total revenue will change. On the graph, if the oligopolist's MC curve shifts from MC ₁ to MC ₂, the firm will charge


A) a higher price than before and total revenue will increase.
B) the same price as before and sell more output; total revenue will increase.
C) the same price as before and sell the same amount of output; total revenue will remain the same.
D) a higher price than before and sell less output; it can't be determined whether total revenue will change.

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