Upon buying a car with airbags, Indy begins to drive recklessly. This is an example of the:

If the manager of a nonprofit enterprise sets prices below market clearing levels, she

A) increases the net revenue of the enterprise. B) provides herself with control over a valuable good. C) reduces her personal popularity. D) produces all of the above consequences.

A perfectly competitive firm is producing more than the profit-maximizing amount of its product. You can conclude that its

A) total cost exceeds its total revenue. B) average total cost exceeds the price of the product. C) marginal revenue is less than the price of the product. D) marginal cost exceeds the price of the product.