Author Question: If the market price for a competitive firm's output doubles then A) the profit maximizing output ... (Read 87 times)

natalie2426 · **on:** Jul 1, 2018

If the market price for a competitive firm's output doubles then

A) the profit maximizing output will double
B) the marginal revenue doubles
C) at the new profit maximizing output, price has increased more than marginal cost
D) at the new profit maximizing output, price has risen more than marginal revenue
E) competitive firms will earn an economic profit in the long-run.

Question 2

The difference between what a consumer is willing to pay for a unit of a good and what must be paid when actually buying it is called

A) producer surplus.
B) consumer surplus.
C) cost benefit analysis.
D) net utility.