26) An industry analyst observes that in response to a small increase in price,

Question

26) An industry analyst observes that in response to a small increase in price, a competitive firm's output sometimes rises a little and sometimes a lot. The best explanation for this finding is that A) the firm's marginal cost curve is random. B) the firm's marginal cost curve has a very small positive slope. C) the firm's marginal cost has a very large positive slope. D the firm's marginal cost curve is horizontal fo E) the firm's marginal cost curve is downward sloping. Answer: D r some ranges of output and rises in steps

Explanation / Answer

Q.6

the correct option is D.

the firms marginal cost curve is horizontal for same range of output and risein steps

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