A monopolist will maximize profits by producing a quantity specified by setting marginal revenue equal to marginal cost

The figure above shows an education market in which the government is providing households with vouchers. What is the efficient quantity of students?

A) 2 million B) 4 million C) 6 million D) more than 6 million E) more than 4 million and less than 6 million

If a firm that repairs both motorcycles and cars is able to do so at a lower cost than a firm that does only one or the other, this would be an example of

A) economies of scope. B) economies of scale. C) monitoring. D) increasing transactions costs.