Which firm will maximise profits if produces level of output

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Reference no: EM132990248

Problem 1: The price of apples falls by 5% and quantity demanded increases by 6%. This means that the demand for apples is

Select one:

a. perfectly inelastic.

b. elastic.

c. perfectly elastic.

d. inelastic.

Problem 2: A firm will maximise its profits if it produces and sells the level of output where

Select one:

a. marginal revenue equals marginal cost.

b. average revenue equals marginal cost.

c. marginal revenue equals average cost.

d. average revenue equals average cost.

Reference no: EM132990248

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