A perfectly competitive firm may, under some circumstances, be able to affect the market price

In the model of aggregate demand and aggregate supply, the initial impact of an increase in consumer optimism is to

A. shift long-run aggregate supply to the left. B. shift aggregate demand to the right. C. shift short-run aggregate supply to the left. D. shift short-run aggregate supply to the right. E. shift aggregate demand to the left.

The above figure shows the demand and cost curves facing a monopoly. Maximum profit equals

A) $0. B) $100. C) $1,000. D) $2,500.