28. By increasing its output from Q1 to Q2, the firm A. Reduces its marginal revenue. B. Increases its marginal revenue. C. Decreases its profit. D. Increases its profit.

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter13: Firms In Competitive Markets
Section: Chapter Questions
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Use Figure 6 to answer question 28.
Figure 6
Total revenue and total cost (dollars)
500
400
300
200
100
0
D
Q₂
TC
TR
Quantity
28. By increasing its output from Q1 to Q2, the firm
A. Reduces its marginal revenue.
B. Increases its marginal revenue.
C. Decreases its profit.
D. Increases its profit.
Transcribed Image Text:Use Figure 6 to answer question 28. Figure 6 Total revenue and total cost (dollars) 500 400 300 200 100 0 D Q₂ TC TR Quantity 28. By increasing its output from Q1 to Q2, the firm A. Reduces its marginal revenue. B. Increases its marginal revenue. C. Decreases its profit. D. Increases its profit.
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