In order to sell more output units, what must a monopoly do?

For consumers, taco chips and salsa are complements. If the price of salsa rises, what is the effect on the equilibrium price and quantity of taco chips?

A) The equilibrium price of taco chips falls, and the equilibrium quantity decreases. B) The equilibrium price of taco chips rises, and the equilibrium quantity decreases. C) There is no change in the equilibrium price of taco chips, and the equilibrium quantity increases. D) The equilibrium price of taco chips could rise, fall, or stay the same, and the equilibrium quantity increases. E) The equilibrium price of taco chips rises, and the equilibrium quantity increases.

The figure above portrays a total revenue curve for a perfectly competitive firm. Curve A is straight because the firm

A) is a price taker. B) faces constant returns to scale. C) wants to maximize its profits. D) has perfect information.