--%>

Changing in marginal cost without price and output

When this firm's marginal cost curve moved upward from MC2 to MC3, the firm would: (w) reduce output from Q3 to Q2 and increase price from P3 to P4. (x) reduce output by Q2 to Q1 and raise price from P4 to P5. (y) not change its price or output. (z) shut down.

1969_Kinked Demand Curve.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Reallocation of resources-Government

    Describe the Reallocation of resources objective of the government budget.

  • Q : Occurrence of increase in supply in

    In short run, the increase in supply takes place whenever the: (1) Supply curve shifts upward and to left. (2) Preferences of consumers change in a positive direction. (3) Market price raise. (4) Amounts producers make accessible rise at each and every price. (5) Publ

  • Q : Market power and market inefficiency

    This is socially undesirable for a monopolist to produce where the price exceeds to marginal social cost [P > MSC] since: (w) resources are allocated inefficiently since too small is produced. (x) too many resources are used and production is exces

  • Q : Tax burden distribution of relatively

    Demands for alcoholic and tobacco beverages tend to be relatively price inelastic and income inelastic. There per unit “sin taxes” upon these products will share out the tax burden: (i) proportionally among high-income and

  • Q : Words of Economic Rent about David

    David Ricardo: (w) was the originator of the theory of pure economic rent onto land. (x) believed that land rent was earned since land would not be available at a zero price. (y) observed that marginal land which is just barely helpful commands positi

  • Q : Equilibrium rate of monopsony

    I have a problem in economics on Equilibrium rate of monopsony exploitation. Please help me in the following question. Equilibrium rate of the monopsony exploitation by a firm is a difference between: (i) MRP and VMP. (ii) VMP and w. (iii) MFC and w.

  • Q : Responding higher prices for heating

    Can someone help me in finding out the right answer from the given options. Canadians would ultimately be likely to respond to higher prices for heating oil and natural gas through (i) Turning up their electric blankets and insulating their houses more carefully. (ii)

  • Q : Lowest possibility for price elasticity

    The price elasticity of demand would possibly be lowest for: (1) Dasani. (2) Deer Park. (3) Aquafina. (4) bottled water. (5) Perrier. Can anybody suggest me the proper explanation for given problem regarding

  • Q : Pure competitors or perfect competitors

    The price makers in a purely competitive market are: (i) pure competitors or perfect competitors. (ii) producers of capital goods. (iii) pure oligopolies. (iv) monopolistic competitors.  (v) pure monopolies. H

  • Q : Emphasis on equality of opportunity An

    An emphasis on equality of opportunity, although not essentially equality of result, is a center-piece of a system of distribution termed as: (1) meritocracy. (2) laissez faire capitalism. (3) feudalism. (4) socialism. (5) syndicalism