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?

View Complete Question

Related Questions in Microeconomics

Q : AFC curve What does AFC curve appear

What does AFC curve appear like? Why does it appear so?

Q : Stream of Present Value of Annual Income

The present value of an annual income stream which goes onto forever is: (w) infinite. (x) zero. (y) the annual income multiplied through the interest rate. (z) the annual income divided through the interest rate.

Q : Normal accounting returns to investment

Pure economic profits do not arise due to: (w) monopoly power. (x) capital owners’ receipts of normal accounting returns to investment. (y) risk and uncertainty. (z) entrepreneurial innovation. How can I solv

Q : Problem concerning agency Shop

Can someone help me in finding out the right answer from the given options. Non-union members can’t "free-ride" in states with Right-to-Work laws whenever a company agrees to operate: (i) Closed shop. (ii) Agency shop. (iii) Open shop.

Q : Words of Johann H. von Thünen about

The theory about land derives its value primarily by how much its location conserves on transaction costs is attributable to: (a) Johann H. von Thünen. (b) Adam Smith. (c) Richard Cantillon. (d) David Ricardo. (e) Reverend Thomas Robert (“B

Q : Firms and Transaction Costs An

An individual or organization which simultaneously purchases low and sells high in various markets is a/an: (i) Angel duster. (ii) Escalator. (iii) Arbitrageur. (iv) Finagler. (v) Optimizer. Can someone please help me in find

Q : Demand when total revenue uninfluenced

When total revenue to a firm is uninfluenced by small price changes, in that case demand is: (1) relatively price elastic. (2) relatively price inelastic. (3) unitarily price elastic. (4) vertical. (5) horizontal.

Q : Stable negatively-sloped demand curve

Assume that a monopolist face a stable negatively-sloped demand curve. Making more sales needs the monopolist to: (1) advertise its product. (2) decrease the price of the product. (3) lower its marginal revenue. (4) improve its technology. (5) increas

Q : Fixed input in short run I have a

I have a problem in economics on fixed input in short run. Please help me in the following question. Which of the given below is most likely to be the fixed input in short run for General Motors? (i) An assembly line worker. (ii) Paint for cars. (iii)

Q : Measurement of price cross-elasticity

Price cross-elasticity of demand measures the virtual responsiveness of the quantity sold of a specified good to a change in the: (w) price of which good. (x) individual's income. (y) sales of another good. (z) price of another good.

Discover Q & A

Leading Solution Library

Avail More Than 1447204 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1939375
Asked

3,689

Active Tutors

1447204

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment