Unformatted text preview: Question 2 Correct Mark 1.00 out of 1.00 Y Remove flag Assume that the two firms A and B are in two isolated markets. The total cost functions of both firms are shown below:
Firm A’s total costs = $(150 + 50)
Firm B’s total costs = $(100 + SQ) where Q is the quantity produced. Suppose that both firms face the same demand function, that they are both pursuing a profit maximization policy, and that both firms
are earning positive economic profits. Compared with firm A, firm B produce , and have profits and producer surplus. Select one: a. Not enough information to answer this question.
; b. the same quantity; higher; the same size of J c. less; lower; smaller d. more; higher; larger e. the same quantity; the same amount of; the same size of ...
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- Spring '14