As market price increases, in the short run, a profit-maximizing firm in a price-taker market will expand output along its
A) marginal cost curve.
B) average total cost curve.
C) average variable cost curve.
D) market demand curve.

Question

Quizplus · Accepted Answer

In a price-taker market, a firm maximizes profit by producing where marginal cost equals market price. Thus, as market price increases, the firm will expand output along its marginal cost curve.

As Market Price Increases, in the Short Run, a Profit-Maximizing