If a monopoly firm is at a level of output where MC equals $10 and is increasing, MR equals $10, and average variable cost equals $9 . To maximize profits, the firm should:
a. increase both output and price

The costs to firms of changing prices are called

A) menu costs. B) redistribution costs. C) anticipation costs. D) money illusion costs.

The above figure shows supply and demand curves for milk. Suppose that the government passes a $2 per gallon subsidy. The deadweight loss resulting from this policy will be

A) j. B) f + g. C) b + c + f + g. D) c + g.