The branch of economics which studies how households and firms interact in markets is called

For each pair of items below determine which product would have the higher price elasticity of demand (in absolute value)

a. Insulin for a diabetic or aspirin for someone suffering a headache. b. A new Whirlpool 27 cu.ft. side-by-side refrigerator or electricity to power your all-electric home. c. A can of Red Bull or soft drinks in general.

In long-run equilibrium a perfectly competitive firm will operate where the price is

A) greater than MR but equal to MC and minimum ATC. B) greater than MR and MC, but equal to minimum ATC. C) greater than MC and minimum ATC, but equal to MR. D) equal to MR, MC and minimum to ATC.