Author Question: If, at the point where MR = MC, the firm incurs losses, in the short run the firm should: a. shut ... (Read 35 times)

WWatsford · **on:** Jun 30, 2018

If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
a. shut down.
b. increase output.
c. decrease output.
d. continue at its current output if P > AVC.
e. continue at its current output if P > ATC.

Question 2

We would expect the cross elasticity between tennis racquets and tennis balls to be:
a. negative.
b. positive.
c. zero.
d. one.
e. infinite.