An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium

According to the diagram in the above figure, what is the marginal benefit of consuming the 3 millionth gallon of gasoline per month?

A) 5 pounds of shrimp per gallon of gasoline B) 3 pounds of shrimp per gallon of gasoline C) 2 pounds of shrimp per gallon of gasoline D) 1 pound of shrimp per gallon of gasoline

Suppose the local government is considering using marginal cost pricing to set rates for a cable TV company. Which of the following arguments supports marginal cost pricing?

a. Marginal cost pricing gives the monopoly economic profit and a reason to stay in business. b. Marginal cost pricing gives the firm a normal economic profit and a reason to stay in business. c. Marginal cost pricing is allocatively efficient. d. Average cost pricing requires subsidies, which can be costly. e. Average cost pricing forces monopolies to operate at a loss.