Which of the following models results in the greatest total profit, assuming a fixed number of firms with identical costs and a given demand curve?

Why doesn't a firm price discriminate based on income levels?

A) It would be nearly impossible to conveniently confirm any individual's income level. B) It is illegal to ask someone their income levels. C) It is immoral to price discriminate based on income levels. D) They do: It is common practice for firms to price discriminate based on income.

The school of thought that assumes that real GDP is determined by aggregate supply, whereas the equilibrium price level is determined by aggregate demand is known as _____

a. neoclassical economics b. classical economics c. new Keynesian economics d. Keynesian economics e. Marxist economics