If, at the point where MR = MC, the firm incurs losses, in the ...

[WWatsford]

If, at the point where MR = MC, the firm incurs losses, in the short run the firm should:
 a. shut down.
  b. increase output.
  c. decrease output.
  d. continue at its current output if P > AVC.
  e. continue at its current output if P > ATC.

Question 2

We would expect the cross elasticity between tennis racquets and tennis balls to be:
 a. negative.
  b. positive.
  c. zero.
  d. one.
  e. infinite.

[shoemake]

Answer to Question 1

d

Answer to Question 2

a

[WWatsford]

YES! Correct, THANKS for helping me on my review

[AmberC1996]

Thanks for the timely response, appreciate it