Author Question: If a firm increases output when MR < MC, then: a. profit will equal zero. b. profit will ... (Read 32 times)

luminitza · **on:** Jun 30, 2018

If a firm increases output when MR < MC, then:
a. profit will equal zero.
b. profit will increase.
c. profit will decrease.
d. profit will remain the same.
e. the firm is minimizing losses.

Question 2

If a good is inferior in an economic sense:
a. it is demand price elastic.
b. it is demand price inelastic.
c. the income elasticity of demand is negative.
d. it is a low-quality good.
e. it is not the highest quality good in its class.