When choosing the production level for tomorrow you find that at ...

[c0205847]

When choosing the production level for tomorrow you find that at an output of 100 units, the total variable costs are 20,000 and the average fixed cost is only 50 . If the market price is 200, you should:
 a. b or e.
  b. shut down.
  c. produce more than 100 units.
  d. produce fewer than 100 units.
  e. produce where MC = MR.

Question 2

Price elasticities of supply are always:
 a. the same as price elasticities of demand.
  b. negative numbers.
  c. positive numbers.
  d. greater than one.
  e. increased when a tax is imposed.

[lauravaras]

Answer to Question 1

a

Answer to Question 2

c