In order to maximize profits, a monopolist should produce where the average revenue is equal to marginal cost

Refer to Table 16-4. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy

If Congress and the president use fiscal policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if Congress and the president had taken no action? A) real GDP and potential GDP B) potential GDP and the inflation rate C) real GDP and the inflation rate D) real GDP and the unemployment rate

Suppose a monopolist is producing a level of output such that MR > MC. What should the firm do to maximize its profits?

A) The firm should do nothing — it wants to maximize the difference between MR and MC in order to maximize its profits. B) The firm should hire less labor. C) The firm should increase price. D) The firm should increase output.