If a firm's marginal revenue from its 100th unit of output is 50 ...

[Pea0909berry]

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]

Answer to Question 1

c

Answer to Question 2

b