The flat-screen plasma TVs are selling extremely well. The originators of this technology are earning higher profits. What theory of profit best reflects the performance of the plasma screen makers?

According to the modern Keynesian view,

a. both the IS and the LM curve slopes are in the intermediate or normal range, where both monetary and fiscal policies are effective in controlling income. b. only the IS curve slope is in the intermediate or normal range and, therefore, only fiscal policy is effective in controlling income. c. only the LM curve slope is in the intermediate or normal range and, therefore, only monetary policy is effective in controlling income. d. neither the IS nor the LM curve slopes are in the intermediate or normal range and, therefore, neither monetary nor fiscal policies are effective in controlling income.

Price should be

A) determined by equating average cost and marginal cost to determine quantity and then setting the price using that quantity and the demand curve. B) determined by equating marginal revenue and average revenue to determine quantity and then setting the price using that quantity and the demand curve. C) determined by equating marginal revenue and marginal cost to determine quantity and then setting the price using that quantity and the demand curve. D) determined by equating marginal revenue and long-run average cost to determine quantity and then setting the price using that quantity and the demand curve.