Refer to Figure 5-6. What is the economically efficient output level?

Why does an indifference curve slope downward and why is it bowed toward the origin?

What will be an ideal response?

The profit maximizing behavior of a monopoly is different from that of a perfectly competitive firm in that a monopoly can

A) only choose the desired output, while a competitive firm can control only price. B) only choose the desired price, while a competitive firm can control only output. C) control the position of its demand schedule, but a competitive firm cannot. D) control the desired price and output to maximize profits, but a perfectly competitive firm can only choose the desired output.