Author Question: A perfectly competitive firm maximizes profits or minimizes losses in the short-run by producing at ... (Read 34 times)

chandani · **on:** Jun 30, 2018

A perfectly competitive firm maximizes profits or minimizes losses in the short-run by producing at the output level at which:
a. marginal revenue equals marginal cost.
b. total revenue equals total cost.
c. total revenue is at a maximum.
d. none of these.

Question 2

When economists look at the percentage change in quantity demanded generated by a change in income, they are looking at:
a. price elasticity of demand.
b. income elasticity of demand.
c. price elasticity of supply.
d. cross elasticity of demand.
e. cross elasticity of supply.