Refer to Figure 4-10. Suppose that instead of a price ceiling, the government imposed a price floor of R1. What is the area representing producer surplus after the imposition of the price floor?

Successive downward movements along the demand curve for the product of a monopolist always generate successive

A) increases in the monopolist's marginal revenue. B) increases in the monopolist's average total costs. C) decreases in the additional per-unit costs incurred by the monopolist. D) decreases in the additional per-unit revenues earned by the monopolist.

Specialization and the division of labor typically result in

A) cost overruns. B) increased output. C) decreased output. D) a greater reliance upon imports.