Refer to the figure above. If the monopolist faces a constant marginal cost of $2, at what price should it sell its output?

The "law of supply" states that, other things remaining the same, firms produce

A) more of a good the less it costs to produce it. B) less of a good the more it costs to produce it. C) more of a good the higher its price. D) less of a good as the required resources become scarcer.

The action of arbitrage is

A) the process of buying a currency cheap and selling it dear. B) the process of buying a currency dear and selling it cheap. C) the process of buying and selling currency at the same price. D) the process of selling currency at different prices in different markets. E) the process of buying a currency and holding onto it to take it off the market.