A firm in a perfectly competitive industry is maximizing its economic profit by producing 500 units of output. At 500 units of output, which one of the following must be false?

Individuals must make choices because

a. resources are scarce and wants are limited b. resources and wants are unlimited c. assets and wealth are distributed unevenly d. resources are scarce and wants are unlimited e. inflation usually outpaces income growth

A tax on sellers:

A. causes equilibrium price to increase and equilibrium quantity to decrease. B. cause equilibrium price and quantity to increase. C. cause equilibrium price and quantity to decrease. D. cause equilibrium price to decrease and equilibrium quantity to increase.