The budget constraint illustrates all of the combinations of goods and services that the consumer can afford

In a monopoly, producers ________ and consumers ________

A) gain; lose B) lose; lose C) lose; gain D) gain; gain E) gain; do not gain or lose

Assume that price is greater than average variable cost. If a perfectly competitive seller is producing at an output where price is $11 and the marginal cost is $14.54, then to maximize profits the firm should

A) continue producing at the current output. B) produce a smaller level of output. C) produce a larger level of output. D) There is not enough information given to answer the question.