Suppose the price of a product is less than its average variable ...

[naturalchemist]

Suppose the price of a product is less than its average variable cost. When the firm's fixed obligations are completely ended, it will now most likely:
 a. make an economic profit.
  b. go out of business.
  c. expand to a bigger operation.
  d. continue to be shut down.
  e. break even.

Question 2

In order to prove that Dr. Pepper and 7-Up are substitutes, the FTC should test the ____ and get a ____.
 a. price elasticity of demand; number less than 1
  b. income elasticity; positive number
  c. price elasticity; negative number
  d. price elasticity of demand; number greater than 1
  e. cross-price elasticity; positive number

[sierrahalpin]

Answer to Question 1

b

Answer to Question 2

e