Author Question: Productive efficiency occurs in perfect competition because the firm produces at the minimum of the: ... (Read 30 times)

rachel9 · **on:** Jun 30, 2018

Productive efficiency occurs in perfect competition because the firm produces at the minimum of the:
a. average fixed cost curve.
b. average variable cost curve
c. average total cost curve
d. marginal revenue curve.

Question 2

What is the difference between the cross-elasticity of demand for two goods which are substitutes and two goods which are complements?

mammy1697 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

c

Answer to Question 2

If the goods are substitutes, the cross-elasticity of demand is positive, and if they are complements the cross elasticity of demand is negative.