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Author Question: If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in ... (Read 32 times)

Metfan725

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on: Jun 30, 2018
If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in the long run this firm:
 a. will continue to operate at a loss.
  b. will earn a positive profit.
  c. will go out of business.
  d. should increase output.
  e. should decrease price.

Question 2

The cross elasticity between two goods is 2.5 . These goods are:
 a. perfect complements.
  b. imperfect complements.
  c. unrelated.
  d. substitutes.
  e. inferior.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Hikerman221

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

c

Answer to Question 2

d


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