You are an analyst with a perfectly competitive firm that makes DRAM memory chips. You must manufacture the chips before you know what the demand will be. Based on the below figure, if the demand is high with an 80% probability and low with a 20% probability, the expected marginal revenue for a chip is ________.

In the figure above, the MRS at point A is ________ the MRS at point B

A) equal to B) less than C) greater than D) not able to be compared to

From 1960 to 1980, federal government spending on national defense _____

a. declined from about half to less than one quarter of all expenditures b. declined from one-third to less than one quarter of all expenditures c. increased from about half to nearly 60 percent of all expenditures d. increased from about one quarter to nearly one-half of all expenditures