The cross elasticity of demand for substitute products must:

Using Scenario 2 suppose Susan has eliminated two of the answers but is unsure of which of the remaining three answers are correct. Determine whether it is rational for Bill to guess

What will be an ideal response?

A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. The prevailing market price is $48. Assuming that this firm continues to produce in the long run, what happens to output level in the long

run? A) The firm's output falls. B) The firm's output increases. C) The firm produces the same output level. D) There is insufficient information to answer the question.