Which of the following will result from an epizootic affecting sheep reared for wool?
a. The epizootic would lower people's preference for woolen clothes.
b. The price of new woolen clothes would rise.
c. The epizootic would lower people's preference for synthetic coats.
d. The production of new woolen clothes would rise.
Question 2
A firm maximizes its profit at a level of output, where the additional revenue earned by selling an extra unit of the output is equal to the additional cost borne for producing that extra unit of the output.
a. True
b. False
Indicate whether the statement is true or false
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