Refer to the graph shown. Other things equal, an increase in the market price of this product will cause:
A) an increase in total revenue and a decrease in the firm's profit-maximizing level of output.
B) an increase in total revenue and an increase in the firm's profit-maximizing level of output.
C) a decrease in total revenue and a decrease in the firm's profit-maximizing level of output.
D) a decrease in total revenue and an increase in the firm's profit-maximizing level of output.

Question

Refer to the graph shown. Other things equal, an increase in the market price of this product will cause: 
A) an increase in total revenue and a decrease in the firm's profit-maximizing level of output. 
B) an increase in total revenue and an increase in the firm's profit-maximizing level of output. 
C) a decrease in total revenue and a decrease in the firm's profit-maximizing level of output. 
D) a decrease in total revenue and an increase in the firm's profit-maximizing level of output.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Other things equal, an increase in the market price of this product will cause: 
A) an increase in total revenue and a decrease in the firm's profit-maximizing level of output. 
B) an increase in total revenue and an increase in the firm's profit-maximizing level of output. 
C) a decrease in total revenue and a decrease in the firm's profit-maximizing level of output. 
D) a decrease in total revenue and an increase in the firm's profit-maximizing level of output.

Refer to the Graph Shown