Suppose you are choosing between milk and cookies. If the opportunity cost of cookies in terms of milk increases, then the budget curve will

Which statement is correct?

A. In the short run the pure monopolist will maximize total profits by producing at that level of output where the difference between price and average total cost is greatest B. In the short run the pure monopolist will charge the highest price it can get for its product C. Because of its ability to set its own price, the pure monopolist can increase price and increase its volume of sales simultaneously D. Pure monopolists do not always realize positive profits, sometimes they suffer losses

In a simple macroeconomic model, only one component of expenditures is allowed to change:

A. investment. B. consumption. C. net exports. D. government spending. E. transfer payments.