The demand curve facing a monopolist is perfectly elastic

If marginal revenue exceeds marginal cost, a price-taker firm should

a. expand output. b. reduce output. c. lower its price. d. do both a and c.

The Laffer curve makes the point that cutting a very high marginal tax rate can __________ the tax base enough so that tax revenues __________

A) lower; rise B) lower; fall C) raise; rise D) raise; fall