Suppose Gizmo Inc. is willing to sell one gizmo for $10, a second gizmo for $12, a third for $14, and a fourth for $20, and the market price is $20. What is Gizmo Inc.'s producer surplus?

A profit-maximizing monopolist never produces along the __________ portion of the demand curve because marginal revenue is __________ there

a. elastic; positive b. elastic; negative c. inelastic; negative d. inelastic; positive e. inelastic; zero

When faced with all available alternatives, the consumer will select the one that is ranked the highest. This principle is called:

A. the choice principle. B. the ranking principle. C. the consumption principle. D. the more-is-better principle.