By producing at the point where MR = MC, the firm: a. is ...

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By producing at the point where MR = MC, the firm:
 a. is guaranteed a profit.
  b. will earn a profit of zero.
  c. will lose money.
  d. profit is maximized.
  e. output.

Question 2

If Coke and Pepsi are close substitutes, then if:
 a. Coke raises its price, so will Pepsi.
  b. Coke raises its price, it will not lose customers to Pepsi.
  c. Pepsi lowers its price, it will not hurt Coke.
  d. Pepsi lowers its price, so will Coke.
  e. Coke raises its price, some customers will switch to Pepsi.

[Mochi]

Answer to Question 1

d

Answer to Question 2

e

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Thanks for the timely response, appreciate it

[diana chang]

Wow, this really help