Author Question: If a fall in the price of good A increases the quantity demanded of good B A) A and B are ... (Read 80 times)

dbose · **on:** Jun 29, 2018

If a fall in the price of good A increases the quantity demanded of good B

A) A and B are substitutes.
B) A and B are complements.
C) A is a substitute for B, but B is a complement to A.
D) B is a substitute for A, but A is a complement to B.

Question 2

A perfectly competitive firm will operate and incur an economic loss in the short run if

A) the loss is smaller than its total fixed costs.
B) it knows it can recoup the loss in the long run.
C) shareholders do not know about the loss.
D) the loss can offset future profits.