A consumer's budget constraint for goods X and Y is determined by how much the consumer likes good X relative to good Y

You have a bond that pays $60 per year in coupon payments. Which of the following would result in an increase in the price of your bond?

A) The price of a share of stock in the company falls. B) Coupon payments on newly-issued bonds fall to $50 per year. C) Coupon payments on newly-issued bonds rise to $80 per year. D) The likelihood that the firm issuing your bond will default on debt increases.

If a firm sells its output at a price greater than AC, it will earn economic profit

a. True b. False Indicate whether the statement is true or false