Assume that at the current level of output produced by a perfectly competitive firm, MR = $7.50 and MC = $6. In order to maximize its profit, the firm should increase output

A decrease in the marginal income tax rate is a fiscal policy which will increase aggregate demand

Indicate whether the statement is true or false

The level of capital per person would increase if

A) the average saving rate were higher. B) the output-to-capital ratio increased. C) the depreciation rate increased. D) Both A and B.