Author Question: A perfectly competitive firm sells its output for 100 per unit and marginal cost is 100 per unit. To ... (Read 62 times)

charchew

  • Hero Member
  • *****
  • Posts: 579
A perfectly competitive firm sells its output for 100 per unit and marginal cost is 100 per unit. To maximize short-run profit, the firm should:
 a. increase output.
  b. decrease output.
  c. maintain its current output.
  d. shut down.

Question 2

If a 1 percent change in income generates a greater than 1 percent change in quantity demanded of boating expenditures, then boating is an:
 a. example of Engel's law.
  b. inferior good.
  c. income inelastic good.
  d. income elastic good.
  e. example of a substitute good.



ong527

  • Sr. Member
  • ****
  • Posts: 285
Answer to Question 1

c

Answer to Question 2

d



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

Eating carrots will improve your eyesight. Carrots are high in vitamin A (retinol), which is essential for good vision. It can also be found in milk, cheese, egg yolks, and liver.

For a complete list of videos, visit our video library