In long-run equilibrium, a competitive firm produces the level of ...

[Zulu123]

In long-run equilibrium, a competitive firm produces the level of output at which:
 a. marginal cost is at a minimum.
  b. short-run average total cost and long-run average cost are at a minimum.
  c. total revenue is at a maximum.
  d. diseconomies of scale end.

Question 2

If a good has a price elasticity of demand coefficient greater than 1, total revenue can be increased by raising the price.
 a. True
  b. False
  Indicate whether the statement is true or false

[briezy]

Answer to Question 1

b

Answer to Question 2

False