Author Question: If a firm's marginal revenue from its 100th unit of output is 50 and the marginal cost from its ... (Read 72 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
If a firm's marginal revenue from its 100th unit of output is 50 and the marginal cost from its 100th unit of output is 45, then in the short run this firm should:
 a. increase its plant size.
  b. change its technology.
  c. produce more than 99 units of output.
  d. produce less than 100 units of output.
  e. shut down.

Question 2

The cross price elasticities among substitute goods will be extremely high when:
 a. b and d.
  b. they are very similar to each other.
  c. people are consuming them frequently.
  d. people consume them in equal quantities.
  e. they are imperfect substitutes.



yifu223

  • Sr. Member
  • ****
  • Posts: 302
Answer to Question 1

c

Answer to Question 2

b



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Many medications that are used to treat infertility are injected subcutaneously. This is easy to do using the anterior abdomen as the site of injection but avoiding the area directly around the belly button.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

For a complete list of videos, visit our video library