Author Question: If supply is price-inelastic and demand is price-elastic, then the firm can earn positive profits by ... (Read 22 times)

geoffrey · **on:** Jun 30, 2018

If supply is price-inelastic and demand is price-elastic, then the firm can earn positive profits by increasing the price.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Wanda Rumble promotes boxing matches. She makes 6,500 per fight. Which cost is most relevant to a decision as to whether to promote one more fight?
a. the total cost of promoting all boxing matches during the year
b. the marginal cost of promoting one additional boxing match
c. the average fixed cost of promoting a boxing match
d. the average total cost of promoting a boxing match