Author Question: If ABC Printing is producing an output level of 100, where MR is 5 and MC is 3, then the firm is: ... (Read 55 times)

jace · **on:** Jun 30, 2018

If ABC Printing is producing an output level of 100, where MR is 5 and MC is 3, then the firm is:
a. maximizing total profit.
b. making too much profit.
c. making 200 total profit.
d. making 200 total loss.
e. making an unknown amount of profit or loss.

Question 2

Inferior goods have an income elasticity of demand that is:
a. positive.
b. negative.
c. 0.
d. greater than 1 in absolute value.
e. equal to 1 in absolute value.