The ________ elastic a firm's demand curve, the greater its ...

[jake]

The ________ elastic a firm's demand curve, the greater its ________.
 
  A) less; monopoly power
  B) less; output
  C) more; monopoly power
  D) more; costs

Question 2

Suppose a firm has unavoidable fixed costs of 500,000 per year, and it decides to shut down. What is the firm's producer surplus?
 
  A) PS is positive in this case, but we cannot determine the value based on the given information
  B) PS is negative in this case, but we cannot determine the value based on the given information
  C) PS = -500,000
  D) PS = 0

[Koolkid240]

Answer to Question 1

A

Answer to Question 2

A

[jake]

Gracias!

[ebonylittles]

YES! Correct, THANKS for helping me on my review