Consider a firm with the following cost and revenue information: ...

[ericka1]

Consider a firm with the following cost and revenue information: ATC = 8, AVC = 7, and MR = MC = 6 . If the firm produces Q = 60 in the short run, it:
 a. is minimizing losses.
  b. makes a total loss of 60.
  c. should produce more output.
  d. is making a mistake and should shut down.
  e. is maximizing total profit.

Question 2

The price elasticity of demand between rifles and bullets is likely to be:
 a. negative, because the goods are complements.
  b. positive, because the goods are complements.
  c. negative, because the goods are substitutes.
  d. positive, because the goods are substitutes.

[cegalasso]

Answer to Question 1

d

Answer to Question 2

a

[ericka1]

Thank you

[cegalasso]

No problemo