A drought destroys much of the peach crop. As a result, consumer surplus in the peach market:

Should a monopoly charge low introductory price in a two-period model?

A) Yes, if the extra profit in the second period is greater than the foregone in the first period. B) Yes, if the demand in the second period is greater than the demand in the first period. C) No. The first period profit is counted more. D) No. Profit maximization decisions should be made separately.

Suppose Ben buys out Jerry's ownership in the firm but retains him as a salaried employee. If so,

a. economic profit increases b. economic profit decreases c. there is no change in economic profit d. there is no change in accounting profit e. accounting profit increases