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Author Question: If the market price is 5 and you are currently producing at a level where average total cost is 3 ... (Read 38 times)

washai

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If the market price is 5 and you are currently producing at a level where average total cost is 3 and falling, you should:
 a. b or c, it doesn't matter.
  b. shut down.
  c. produce only enough to cover variable costs.
  d. produce where MR = MC.
  e. produce until the average total cost and average revenue are equal.

Question 2

The responsiveness of suppliers to changing prices is called the:
 a. cross elasticity.
  b. supply elasticity.
  c. supply period.
  d. long-run.
  e. market-day.



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annierak

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Answer to Question 1

d

Answer to Question 2

b




washai

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  • Posts: 523
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)


ultraflyy23

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Reply 3 on: Yesterday
:D TYSM

 

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