An increase in wages will cause the aggregate supply curve to

In the figure above, which budget line results in the most real income in terms of compact discs?

A) AD B) BD C) CD D) Real income is equal for all three budget lines.

Eli Whitney III receives a patent for the rayon gin, a product for which there are no close substitutes. Eli will maximize his profit when

a. MR is maximized b. MR = MC c. MR > MC d. MR < MC e. P = MR > MC