Author Question: By producing at the point where MR = MC, the firm: a. is guaranteed a profit. b. will earn a ... (Read 58 times)

plus1 · **on:** Jun 30, 2018

By producing at the point where MR = MC, the firm:
a. is guaranteed a profit.
b. will earn a profit of zero.
c. will lose money.
d. profit is maximized.
e. output.

Question 2

If Coke and Pepsi are close substitutes, then if:
a. Coke raises its price, so will Pepsi.
b. Coke raises its price, it will not lose customers to Pepsi.
c. Pepsi lowers its price, it will not hurt Coke.
d. Pepsi lowers its price, so will Coke.
e. Coke raises its price, some customers will switch to Pepsi.