Economics (Irwin Economics)
Economics (Irwin Economics)
21st Edition
ISBN: 9781259723223
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Chapter 14.2, Problem 2QQ

The D2e segment of the demand curve D2eD1 graph (b) implies that:

a. this firm’s total revenue will fall if it increases its price above P0.

b. other firms will match a price increase above P0.

c. the firm’s relevant marginal-revenue curve will be MR1 for price increases above P0.

d. the product in this industry is necessarily standardized.

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