Author Question: If a firm increases output when MR > MC, then: a. profit will equal zero. b. profit will ... (Read 62 times)

ENagel

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If a firm increases output when MR > MC, then:
 a. profit will equal zero.
  b. profit will increase.
  c. profit will decrease.
  d. profit will remain the same.
  e. the firm is minimizing losses.

Question 2

If a 10 percent decrease in the price of product A brings about a 3 percent increase in the sales of product B, then:
 a. products A and B are complementary.
  b. the cross elasticity of demand between these two products is positive.
  c. products A and B are substitutes.
  d. the demand for these products is inelastic.
  e. the total revenue earned from product A will decrease.



parker125

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Answer to Question 1

b

Answer to Question 2

a



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