One result of a decrease in aggregate demand and no change in aggregate supply is

For the perfectly competitive firm, economic profit equals:

a. (price - marginal cost) x quantity. b. (price - average total cost) x quantity. c. (price - average variable cost) x quantity. d. total revenue - total fixed cost.

Suppose the Fed conducts an open market sale. We can expect this transaction to

A) reduce the money supply, increase bond prices, and lower interest rates. B) increase the money supply, lower bond prices, and lower interest rates. C) increase the money supply, raise bond prices, and lower interest rates. D) reduce the money supply, reduce bond prices, and increase interest rates.