Refer to the above figure. At a price of two cents, the quantity of bubble gum demanded will be

As the number of firms in an oligopoly increases, the

a. price approaches marginal cost, and the quantity approaches the socially efficient level. b. price and quantity approach the monopoly levels. c. price effect exceeds the output effect. d. individual firms' profits increase.

A tax placed on a good can make that good relatively more expensive and its substitutes relatively less expensive

Indicate whether the statement is true or false