The figure below shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. 
At the socially optimal level of output, this monopolist would:
A. incur an economic loss of $64.
B. incur an economic loss of $112.
C. earn an economic profit of $16.
D. incur an economic loss of $16.
Answer: A
Economics
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If a pizza seller reduces its prices, the price cut will
A) have no effect on the demand for competing sellers' pizza. B) increase the seller's gross revenue. C) increase the seller's net revenue. D) shift the seller's demand curve if competing pizza sellers match the price decreases.
Economics