Author Question: A profit-maximizing firm will continue to expand output: a. as long as the revenues from the ... (Read 43 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
A profit-maximizing firm will continue to expand output:
 a. as long as the revenues from the production and sale of an additional unit exceeds the average cost of the unit.
  b. until the average cost of producing the good or service is at a minimum.
  c. as long as the revenues from the production and sale of an additional unit exceeds the marginal cost of the unit.
  d. until the marginal cost of producing a good or service is at a minimum.

Question 2

The number of cases of Coca-Cola bought increased by 50 percent when the price of pretzels declined by 10 percent. Assuming other factors are held constant, Coca-Cola and pretzels are classified as:
 a. complements.
  b. unrelated goods.
  c. substitutes.
  d. social goods.



adammoses97

  • Sr. Member
  • ****
  • Posts: 337
Answer to Question 1

c

Answer to Question 2

a



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

According to the Migraine Research Foundation, migraines are the third most prevalent illness in the world. Women are most affected (18%), followed by children of both sexes (10%), and men (6%).

Did you know?

Signs of depression include feeling sad most of the time for 2 weeks or longer; loss of interest in things normally enjoyed; lack of energy; sleep and appetite disturbances; weight changes; feelings of hopelessness, helplessness, or worthlessness; an inability to make decisions; and thoughts of death and suicide.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

For a complete list of videos, visit our video library