Consider a firm operating with the following: price = 10; MR = ...

[CQXA]

Consider a firm operating with the following: price = 10; MR = 10; MC = 10; ATC = 10 . This firm is:
 a. making an economic profit of 10.
  b. an example of monopolistic competition.
  c. going to go out of business in the long run.
  d. a monopolist for a product with a relatively inelastic demand.
  e. perfectly competitive in long-run equilibrium.

Question 2

Applying supply and demand analysis, other factors held constant, the steeper the supply curve (more inelastic), the larger the burden of a sales tax that is borne by the sellers.
 a. True
  b. False
  Indicate whether the statement is true or false

[nyrave]

Answer to Question 1

e

Answer to Question 2

True

[CQXA]

TYSM

[Jsherida]

Thanks for the timely response, appreciate it