Which of the following is a key characteristic of the long-run ...

[Mr3Hunna]

Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
 a. Free entry to reduce short-run profits, or free exit to reduce short-run losses.
  b. Economic profits are positive, but cannot be negative.
  c. Marginal revenue is greater than marginal cost.
  d. Average revenue is less than average cost.

Question 2

If a 10 percent price increase causes the quantity demanded for a good to decrease by 20 percent, demand is elastic.
 a. True
  b. False
  Indicate whether the statement is true or false

[wshriver]

Answer to Question 1

a

Answer to Question 2

True

[Mr3Hunna]

Thanks for the timely response, appreciate it

[okolip]

YES! Correct, THANKS for helping me on my review