If a perfectly competitive firm finds that it is producing an ...

[asmith134]

If a perfectly competitive firm finds that it is producing an amount of output such that MR > MC and P > AVC, it will
 
  A) leave the industry.
  B) decrease its output.
  C) increase its output.
  D) not change its behavior.

Question 2

At the utility maximizing equilibrium for two goods, X and Y, which of the following must be TRUE?
 
  A) The marginal utility per dollar spent on X will exceed the marginal utility per dollar spent on Y.
  B) The total expenditure will be the same for each good.
  C) The marginal utility per dollar from X equals the marginal utility per dollar from Y.
  D) The marginal utility will be the same for each good.

[cclemon1]

Answer to Question 1

C

Answer to Question 2

C

[asmith134]

Thanks for the timely response, appreciate it

[peter]

YES! Correct, THANKS for helping me on my review