Which of the following is the BEST example of a common resource?

If average fixed cost exceeds average variable cost at a particular level of output: a. Profits must be negative

b. That fact is meaningless for deciding the quantity of output to produce. c. Output levels are probably quite low relative to the designed capacity of the production facility. d. Both b and c. are likely true.

Prince is currently consuming some of good X and some of good Y. If good Y is a normal good for Prince, then an increase in his income will definitely cause him to

a. increase his consumption of X. b. increase his consumption of Y. c. decrease his consumption of X. d. decrease his consumption of Y.