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The Figure Given Below Shows the Revenue and Cost Curves

Question 26

Multiple Choice

The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1
The figure given below shows the revenue and cost curves of a perfectly competitive firm.Figure 10.1    -If the price of the output produced by a perfectly competitive firm increases, then: A) the marginal-cost curve will shift up. B) the demand curve faced by the firm will shift to the left. C) marginal cost will fall as output declines. D) the marginal-revenue curve for the firm will shift up. E) the marginal-cost curve for the firm will shift down.
-If the price of the output produced by a perfectly competitive firm increases, then:


A) the marginal-cost curve will shift up.
B) the demand curve faced by the firm will shift to the left.
C) marginal cost will fall as output declines.
D) the marginal-revenue curve for the firm will shift up.
E) the marginal-cost curve for the firm will shift down.

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