The above figure shows the demand and cost curves for a monopolist. What is the maximum economic profit this firm can make?

When the coupon rate on newly issued bonds increases from 5 percent to 6 percent, the prices of existing bonds:

A. increase. B. decrease. C. increase only if the coupon rate is less than 6 percent. D. remain unchanged.

Any competitive equilibrium is Pareto efficient because with a competitive equilibrium,

A) the marginal rates of substitution are equal for all consumers. B) the price line is the contract curve. C) mutual gains from trade exist. D) the slope of the price line equals the ratio of the MRS for all consumers.