Author Question: If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower ... (Read 89 times)

azncindy619 · **on:** Jun 30, 2018

If the demand for a commodity is perfectly elastic, a downward shift in supply will result in lower prices.
Indicate whether the statement is true or false

Question 2

A profit-maximizing firm will produce the level of output at which:
a. average revenue equals average cost.
b. average revenue equals average variable cost.
c. marginal revenue equals marginal cost.
d. marginal cost equals average revenue.
e. marginal revenue exceeds marginal cost by the maximum amount.