Author Question: When the marginal cost of a price-taker firm is more than the market price of its product, the firm ... (Read 57 times)

lbcchick · **on:** Jun 30, 2018

When the marginal cost of a price-taker firm is more than the market price of its product, the firm should:
a. expand output.
b. reduce output.
c. maintain output.
d. charge more than the market price.

Question 2

The number of satellite dishes increased by 50 percent when the average monthly price of cable TV increased by 10 percent. Assuming that other factors are held constant, satellite dishes and cable TV are classified as:
a. complements.
b. unrelated goods.
c. substitutes.
d. social goods.