« 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 36 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?

Asthma cases in Americans are about 75% higher today than they were in 1980.

Did you know?

On average, the stomach produces 2 L of hydrochloric acid per day.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate The direct product of phosphate hydrolysis from PEP is the enol form of pyruvate
A close relationship between greenhouse gas emissions and a country’s gross domestic product A close relationship between greenhouse gas emissions and a country’s gross domestic product
Price of Computers, 1982–2010 Price of Computers, 1982–2010
Importance of Considering Gestalt Principles in Product Design Importance of Considering Gestalt Principles in Product Design
Find derivative using product rule Find derivative using product rule
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
Video: Net filtration pressure and lymph formation, edema & blood velocity

For a complete list of videos, visit our video library