Author Question: If a competitive firm is losing money then it should: a. always shut down. b. shut down if its ... (Read 59 times)

corkyiscool3328 · **on:** Jun 30, 2018

If a competitive firm is losing money then it should:
a. always shut down.
b. shut down if its losses are greater than total fixed costs.
c. shut down if its total fixed costs are greater than losses.
d. raise its price.

Question 2

If the managers of the bus system found that revenues increase when fares are raised, they would conclude that price elasticity demand for subway service is inelastic.
a. True
b. False
Indicate whether the statement is true or false