Holding all else constant, an increase in the market demand for a product in a competitive market would cause Group of answer choices the marginal revenue (MR) curve of the firms to increase. A decrease in profits for a firm. A decrease in the price a firm could charge for the product. The average total cost (ATC) curve of the firms to increase. The marginal cost (MC) curve of the firms to increase

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12-04-2022
Business

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Holding all else constant, an increase in the market demand for a product in a competitive market would cause Group of answer choices the marginal revenue (MR) curve of the firms to increase. A decrease in profits for a firm. A decrease in the price a firm could charge for the product. The average total cost (ATC) curve of the firms to increase. The marginal cost (MC) curve of the firms to increase

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Tundexi Tundexi · Answer 1 · 2022-04-25T11:13:34+02:00

If all is held constant, it is expected that increase in the market demand for a product in a competitive market would result to an increase to the marginal cost (MC) curve of the firms.

What is an increase in the market demand?

An increase in market demand are caused by rise in income, rise in the price of a substitute, price fall of a complement product etc.

And when there is an increase in market demand, its reflects on the demand graph as the demand curve shift to the right.

Therefore, the Option E is correct.