Use the figure to answer the following question(s).
Figure 9-7
-If the market price in Figure 9-7 increases to $4, what should the firm do?
A) produce 5,000 per week
B) produce 7,500 per week
C) produce 10,000 per week
D) increase its price to $5

Question

Use the figure to answer the following question(s).
Figure 9-7 
-If the market price in Figure 9-7 increases to $4, what should the firm do?
A) produce 5,000 per week 
B) produce 7,500 per week 
C) produce 10,000 per week 
D) increase its price to $5

Quizplus · Accepted Answer

If the market price increases to $4, the firm should produce at the level where marginal cost equals the new market price, which is likely at 10,000 units per week.

Use the Figure to Answer the Following Question(s)