The profit-maximizing firm's output will be about

Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.

A. Only ii
B. i and ii
C. Only iii
D. i and iii
E. Only i

A government wants to reduce electricity consumption by 10%. The price elasticity of demand for electricity is -5. The government must ________ the price of electricity by ________.

A. raise; 1.25% B. raise; 2.0% C. lower; 0.5% D. raise; 0.5%