Author Question: If cheese spreads and butter are substitutes, an increase in the price of butter will: a. shift the ... (Read 138 times)

aabwk4 · **on:** Jun 30, 2018

If cheese spreads and butter are substitutes, an increase in the price of butter will:
a. shift the demand curve for cheese spreads upward.
b. shift the demand curve for cheese spreads downward.
c. shift the demand curve for butter upwards.
d. shift the demand curve for butter downward.

Question 2

Under perfect competition, at the profit-maximizing level of output:
a. price is greater than marginal revenue.
b. price is equal to marginal revenue.
c. marginal revenue is equal to zero.
d. the marginal revenue curve is upward sloping.
e. the average revenue curve is upward sloping.