If the cross-price elasticity of demand between two products is positive, we can conclude that the two products are substitutes

The empirical data reveals the velocity of M2 to be:

A. relatively stable in the long run. B. higher than the velocity of M1. C. stable only when measured annually. D. highly volatile in the long run.

If, in the short run, the level of output is zero, which of the following statement is TRUE?

A. Total cost and total fixed cost graphs will begin at the origin. B. Total variable cost is zero but total cost equals total fixed cost, and both of the latter exceed zero. C. Total fixed cost will also be zero at first but will rise once output rises. D. none of these