A perfectly competitive firm sells its output for 100 per unit ...

[charchew]

A perfectly competitive firm sells its output for 100 per unit and marginal cost is 100 per unit. To maximize short-run profit, the firm should:
 a. increase output.
  b. decrease output.
  c. maintain its current output.
  d. shut down.

Question 2

If a 1 percent change in income generates a greater than 1 percent change in quantity demanded of boating expenditures, then boating is an:
 a. example of Engel's law.
  b. inferior good.
  c. income inelastic good.
  d. income elastic good.
  e. example of a substitute good.

[ong527]

Answer to Question 1

c

Answer to Question 2

d