The following figure shows equilibrium at the industry and firm level. Figure 9.6 In the figure,
S₁, S₂, S₃are the market supply curves.
D₁ and D₂ are the market demand curves.
MC is the marginal cost curve of the firm.
MR₁ and MR₂are the marginal revenue curves of the firm.
ATC is the average-total-cost curve of the firm.
According to Figure 9.6, an upward shift of the MR curve will result from:

Question

The following figure shows equilibrium at the industry and firm level. Figure 9.6

In the figure,
S₁, S₂, S₃are the market supply curves.
D₁ and D₂ are the market demand curves.
MC is the marginal cost curve of the firm.
MR₁ and MR₂are the marginal revenue curves of the firm.
ATC is the average-total-cost curve of the firm.
According to Figure 9.6, an upward shift of the MR curve will result from:

Quizplus · Accepted Answer

An upward shift in the MR curve indicates an increase in revenue for the firm. This can happen if there is a larger demand for the product, which would result in a higher market price and an increase in the quantity demanded. Therefore, choice A is the correct answer. Choices B and C relate to changes in the market structure, but do not necessarily affect the individual firm's revenue curve. Choice D would result in a decrease in revenue. Choice E, while it could potentially lead to a decrease in the firm's costs, would not necessarily result in an upward shift in the MR curve.

The Following Figure Shows Equilibrium at the Industry and Firm