« previous next »

Author Question: If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in ... (Read 33 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 30, 2018
If a firm is currently equating MR and MC and product price = 24, AVC = 22, and ATC = 26, then in the long run this firm:
 a. will continue to operate at a loss.
  b. will earn a positive profit.
  c. will go out of business.
  d. should increase output.
  e. should decrease price.

Question 2

The cross elasticity between two goods is 2.5 . These goods are:
 a. perfect complements.
  b. imperfect complements.
  c. unrelated.
  d. substitutes.
  e. inferior.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
Buy Test-Bank


Hikerman221

  • Sr. Member
  • ****
  • Posts: 346
Reply #1 on: Jun 30, 2018
Answer to Question 1

c

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Eat fiber! A diet high in fiber can help lower cholesterol levels by as much as 10%.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

More than 30% of American adults, and about 12% of children utilize health care approaches that were developed outside of conventional medicine.

Alan Price - Poor People Alan Price - Poor People
Importance of Considering Gestalt Principles in Product Design (2 of 2) Importance of Considering Gestalt Principles in Product Design (2 of 2)
Use the product rule to find derivative Use the product rule to find derivative
Use the product rule to find derivative Use the product rule to find derivative
Find the two integers that have a sum of 20 and a maximum product Find the two integers that have a sum of 20 and a maximum product
A car wash reduced the price of a basic wash as a promotion and test of the market. With the ... A car wash reduced the price of a basic wash as a promotion and test of the market. With the ...
Video: baroreceptors

For a complete list of videos, visit our video library