A clothing store can sell two shirts for $20 each or three shirts for $18 each. At a quantity of three shirts sold, marginal revenue is _____

Refer to Figure 4-1. If the market price is $1.50, what is Arnold's consumer surplus?

A) $1.50 B) $2.25 C) $3.00 D) $4.75

Managers in firms with market power can:

A) not influence price. B) develop strategies that involve both the demand and supply sides of the market. C) only focus on the demand side of the market. D) none of the above.