The firm in the above figure breaks even when market price is

If the demand for a good increases because consumer income increases, the good is a(n):

a. inferior good. b. normal good. c. necessity good. d. luxury good.

A monopolist maximizes profits by

a. producing an output level where marginal revenue equals marginal cost. b. charging a price that is greater than marginal revenue. c. earning a profit of (P - MC) x Q. d. Both a and b are correct.