Lanny is attempting to determine his firm’s economic profits for the previous year. He already knows what its accounting profits were. To calculate its economic profits, Lanny also needs to know the firm’s ______ for the previous year.

At each level of income, net taxes reduce disposable income, thereby reducing consumption spending

a. True b. False

If a monopolist is producing a level of output at which demand is inelastic, then

A. the firm is not maximizing profit. B. marginal revenue is positive. C. total revenue will decrease if the firm produces more output. D. both a and b E. both a and c