If Sally drives less carefully after buying auto insurance, she illustrates

If two households have the same disposable income in the current year, the household with the

A) higher expected future income will consume a larger portion of its current income today. B) lower expected future income will consume more today while it has the money. C) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future. D) none of the above

A monopolist's profit-maximizing price and output correspond to the point on a graph

A) where total costs are the smallest relative to price. B) where marginal revenue equals marginal cost and charging the price on the market demand curve for that output. C) where average total cost is minimized. D) where price is as high as possible.