« previous next »

Author Question: If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in ... (Read 31 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in the long run this firm:
 a. will continue to operate at a loss.
  b. will earn a positive profit.
  c. will go out of business.
  d. should increase output.
  e. should decrease price.

Question 2

The cross elasticity between two goods is 2.5 . These goods are:
 a. perfect complements.
  b. imperfect complements.
  c. unrelated.
  d. substitutes.
  e. inferior.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


Hikerman221

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

Congestive heart failure is a serious disorder that carries a reduced life expectancy. Heart failure is usually a chronic illness, and it may worsen with infection or other physical stressors.

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

On average, someone in the United States has a stroke about every 40 seconds. This is about 795,000 people per year.

Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
A close relationship between greenhouse gas emissions and a country’s gross domestic product A close relationship between greenhouse gas emissions and a country’s gross domestic product
Closed and Open Food Product Dating Closed and Open Food Product Dating
Find derivative using product rule Find derivative using product rule
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
The functional role of pRB. The pRB protein product of RB1 The functional role of pRB. The pRB protein product of RB1
Video: Rena arc construction

For a complete list of videos, visit our video library