A group of friends recently started manufacturing specialty ...

[dakota nelson]

A group of friends recently started manufacturing specialty T-shirts. The business has grown rapidly, with monthly production up from 50 to 250 in the first 6 months. During this same period, average production cost has been cut in half.
 
  The firm's long-run average cost curve over this range of output A) is downward sloping.
  B) is upward sloping.
  C) is horizontal.
  D) may be any of the above.

Question 2

Suppose two firms with differentiated products are competing on price. The reaction curve for Firm 1 is P1 = 4 + 0.5 P2, and the reaction curve for Firm 2 is P2 = 4 + 0.5P1. What is the equilibrium price outcome in this market?
 
  A) P1 = P2 = 4
  B) P1 = P2 = 6
  C) P1 = P2 = 8
  D) P1 = 6 and P2 = 8

[cdmart10]

Answer to Question 1

D

Answer to Question 2

C

[dakota nelson]

Thanks for the timely response, appreciate it

[meow1234]

Excellent