Refer to Scenario 10.2. Suppose that in addition to the tax, a business license is required to stay in business. The license costs $1000. What is the profit maximizing level of output?

A firm's marginal cost equals the:

a. ratio of total cost to total quantity. b. slope of the demand curve under perfect competition. c. slope of the total product curve when the latter is at its maximum. d. change in total cost divided by the change in total output. e. slope of the supply curve.

When prisoners use cigarettes or some other good as money, cigarettes become

a. commodity money, but do not function as a unit of account. b. commodity money and function as a unit of account. c. fiat money, but do not function as a unit of account. d. fiat money and function as a unit of account.