If a model's predictions are correct, then A) its assumptions ...

[fagboi]

If a model's predictions are correct, then
 
  A) its assumptions must have been correct.
  B) it is proven to be correct.
  C) Both A and B above.
  D) None of the above.

Question 2

If a monopoly can advertise and as a result the demand curve will become more inelastic, the monopoly
 
  A) should always engage in the advertising.
  B) should engage in the advertising until the demand curve becomes more elastic.
  C) will earn higher gross profit if it advertises.
  D) None of the above.

[aprice35067]

Answer to Question 1

D

Answer to Question 2

C