In the short run, a perfectly competitive firm's most profitable ...

[Alygatorr01285]

In the short run, a perfectly competitive firm's most profitable level of output is where:
 a. marginal cost exceeds marginal revenue.
  b. total revenue is at a maximum.
  c. marginal cost equals marginal revenue.
  d. All of these.

Question 2

If the cross-elasticity of demand for two goods is negative, this means that:
 a. only the poor will buy the goods.
  b. they are normal goods.
  c. the goods are substitutes.
  d. the goods are complements.

[fdliggud]

Answer to Question 1

c

Answer to Question 2

d