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Author Question: Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will: a. ... (Read 36 times)

Alygatorr01285

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on: Jun 30, 2018
Suppose a monopolist's demand curve lies below its average variable cost curve. The firm will:
 a. earn an economic profit.
  b. stay in operation in the short-run.
  c. shut down.
  d. none of these.

Question 2

If a consumer is spending all of his/her income in a manner where MUa / Pa = MUb / Pb, then the consumer:
 a. should increase the consumption of A and decrease the consumption of B.
  b. is maximizing his/her utility.
  c. should increase the consumption of B and decrease the consumption of A.
  d. should increase the consumption of both A and B.
  e. should decrease the purchases of both A and B.


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succesfull

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Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

b


Alygatorr01285

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Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

phuda

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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