Author Question: In the short run, if a perfectly competitive firm is producing at a price above average total cost, ... (Read 74 times)

Tirant22 · **on:** Jun 30, 2018

In the short run, if a perfectly competitive firm is producing at a price above average total cost, its economic profit must be:
a. positive.
b. zero.
c. negative.
d. normal.

Question 2

If the income elasticity of demand for a good is .59, then it is what type of good?
a. Price elastic.
b. Price inelastic.
c. Income inelastic.
d. Income elastic.
e. Inferior.