The price-taker firm should discontinue production immediately if:
a. the market price exceeds the firm's average total costs.
b. the market price is less than the firm's average variable costs.
c. the market price is less than the firm's average total costs, but greater than its average variable cost.
d. its accounting statement indicates that it is suffering losses.
Question 2
If automobiles and gasoline are complements, then their cross-elasticity coefficient will be:
a. strictly greater than one.
b. positive.
c. equal to zero.
d. negative.
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