Author Question: If a firm in a competitive industry is making zero economic profit but still producing, it must be ... (Read 113 times)

karateprodigy · **on:** Jun 30, 2018

If a firm in a competitive industry is making zero economic profit but still producing, it must be the case that:
a. MC = MR > ATC.
b. MC = MR < ATC.
c. MC = ATC > MR.
d. MC = MR = ATC.
e. this situation is not possible.

Question 2

If the quantity of rental units increases by 10 percent when the monthly rental price doubles, the supply of rental units, other factors held constant, is:
a. elastic.
b. inelastic.
c. perfectly elastic.
d. perfectly inelastic.