Consider a firm with the following cost information: ATC = 15, ...

[OSWALD]

Consider a firm with the following cost information: ATC = 15, AVC = 12, and MC = 14 . If we know that this firm has decided to produce Q = 20 by following the rule to maximize profits or minimize losses, then the price of the output is:
 a. 12.
  b. 14.
  c. 15.
  d. 20.

Question 2

The value of cross elasticity of demand between orange soda and grape soda is:
 a. negative.
  b. positive.
  c. 0.
  d. between 1 and 0.
  e. less than 1.

[joanwhite]

Answer to Question 1

b

Answer to Question 2

b