As the price elasticity of demand for a particular good decreases, the corresponding Lerner Index, and hence the amount of market power attributed to the firm that produces the product in question, decreases as well

After selling 1,000 three-ring binders Tony DiFulvio realizes that the marginal revenue from selling the last binder was less than the marginal cost. From this we can conclude that

A) Tony's business earns a short-run economic profit. B) Tony should shut down his business temporarily. C) Tony's profit fell after selling his 1,000th three-ring binder. D) Tony's profit would be greater if he sold an additional three-ring binder.

Refer to Exhibit 2-1. If the economy is at point C, it follows that