Moral hazard can be a problem in lending since lenders share __________ in the __________ risk

The concerns about world food production raised by Malthus have not materialized because:

A) input prices have fallen over time. B) crop prices have risen over time. C) Malthus was wrong about the diminishing returns to labor in agriculture. D) technological improvements have increased our ability to produce food over time.

A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true?

A) The firm should cut output. B) This is typical for a monopolist; output should not be altered. C) The firm should increase output. D) None of the above is necessarily correct.