An auto rental company lowers the price of its rentals to increase its market share. The price cut increases quantity demanded, but total revenue decreases. This result suggests that over this price range, the demand for the auto rentals is:

Firms in a monopolistically competitive industry maximize profits by

a. equating total revenue and total cost b. treating price as given and maximizing output c. minimizing costs d. producing the level of output at which MR = MC e. producing the level of output at which TR = TC

The market mechanism leads to underproduction of public goods because the supply of public goods is hidden.

Answer the following statement true (T) or false (F)