A perfectly competitive firm maximizes its economic profit when it produces the quantity that sets

According to Say's law, there cannot be overproduction of goods and services because:

a. planned aggregate expenditures sometimes fall short of total output. b. prices and wages are "sticky" or inflexible in the downward direction. c. demand creates its own supply. d. supply creates its own demand.

Because a monopolist must lower its price in order to sell another unit of output,

a. marginal revenue is less than price. b. long-term economic profits will be zero. c. total revenue increases as price increases. d. average revenue is less than price.