Sharmila has a budget line for DVDs and books. DVDs are on the vertical axis and books on the horizontal. Her budget line becomes steeper as

When a firm is a price searcher, its marginal revenue is

a. equal to price because the firm's demand curve is perfectly elastic. b. equal to price if, and only if, the firm is maximizing profits. c. less than price when the firm is maximizing profits. d. equal to average total cost at the long-run equilibrium output rate.

Exhibit 12-2 Lorenz curve As shown in Exhibit 12-2, the distance between points B and D means that 60 percent of families earn ____ less of total income than required for perfect equality.

A. 30 percent B. 50 percent C. 60 percent D. 90 percent