Refer to Scenario 12.2. What is the profit maximizing level of output?

The endogenous variable in the aggregate supply curve is ________

A) output B) the real interest rate C) inflation D) planned expenditure E) none of the above

Answer the following statements true (T) or false (F)

1) In the situation in which consumers have nonidentical demands in two-part pricing, the profit-maximizing user fee is equal to the marginal cost of use. 2) In the situation in which consumers have nonidentical demands in two-part pricing, a firm's profit is always increased if it adjusts the access fee and user fee to sell to all consumers. 3) In all-or-nothing offers, the products packaged together are all the same. 4) If Pasta Meals sells its pasta and pasta sauce in a package and sells the products individually, this is an example of pure bundling. 5) Commodity bundling can increase a firm's profit and lower their transaction costs.