Empirical evidence indicates that most firms operate where marginal and average variable costs are constant

Refer to Table 13-3. What are the profit-maximizing/loss-minimizing output level and price?

A) Q = 0 (firm should not produce) B) Q = 3; P = $18 C) Q = 4; P = $17 D) Q = 5; P = $16

Consider the two following statements: I. x is an inferior good. II. x exhibits Giffen's Paradox. Which of the following is true?

a. I implies II, but II does not necessarily imply I. b. II implies I, but I does not necessarily imply II. c. I and II are statements of the same phenomenon.