The marginal revenue product curve represents a firm's demand curve for a resource

A monopoly firm is charging the price the market will bear at a level of output where MC equals $6 and is increasing, MR equals $9, and average variable cost equals $5 . To maximize profits, the firm should: a. increase both output and price

b. increase output but decrease the price. c. decrease output and increase the price. d. decrease both output and price.

In terms of their economic effects, which of the following policies toward pollution are most similar to one another?

a. regulation and corrective taxes b. regulation and tradable pollution permits c. corrective taxes and tradable pollution permits d. All of these policies produce the same economic effects.