If the quantity supplied of science fiction novels decreases by 3% and the price elasticity of supply is 15, what has been the percentage price change?

Refer to the above figures. A positive externality exists that has not been corrected. Price and quantity will be

A) P1 and Q1. B) P2 and Q2. C) P3 and Q3. D) P4 and Q4.

If a firm is producing an output rate at which marginal cost is greater than price, the firm

A) is sustaining economic loss. B) should increase its output level. C) should reduce its output level. D) will not be covering its fixed cost.