Answer
b.) leave price at p0 but reduce this firm's total profit.
Work Step by Step
The shift of the marginal cost curve causes a reduction in quantity and therefore the total revenue as well.
Economics: Principles, Problems, and Policies, 19th Edition
by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.
Published by
McGraw-Hill Education
ISBN 10:
0073511447
ISBN 13:
978-0-07351-144-3
Chapter 11 - Monopolistic Competition and Oligopoly - Quick Quiz for Figure 11.4 - Page 229: 4
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