Refer to Figure 1A.2. If this consumer rents zero DVDs, how many movie tickets will she purchase?

A monopolist has equated marginal revenue to zero. The firm has:

A) maximized profit. B) maximized revenue. C) minimized cost. D) minimized profit.

A firm that responds to a regulatory rule in a way that permits technical compliance while allowing the firm to violate the spirit of the regulation has

A) reduced the scope of the lemons problem. B) shared the gains and pains of regulation. C) engaged in a creative response to regulation. D) become a captured regulator.