At Nick's Bakery, the cost to make homemade chocolate cake is $4 per cake. As a result of selling five cakes, Nick experiences a producer surplus in the amount of $17.50 . Nick must be selling his cakes for

The marginal rate of substitution of an isoquant curve is the rate at which:

A. inputs must be substituted for one another to keep costs constant. B. the marginal productivity of a factor declines. C. inputs must be substituted for one another to keep output constant. D. inputs are substituted for output.

The quantity theory of money and prices assumes

A. velocity is increasing at a constant rate. B. the price level is constant. C. the price level is increasing at a constant rate. D. velocity is constant.