In the United States in 2011, the bottom fifth of the income distribution had incomes below $27,218

Producers play a disproportionately large role in influencing public regulation because they have a strong interest in matters that affect their specialized source of income

a. True b. False

Would a profit-maximizing firm sell where demand is inelastic?

a. No, this would not follow the rule of MC = MR. b. No, the firm could not profitably raise price. c. Yes, the firm could profitably lower price to attract sales. d. Yes, in this case there are few substitutes for the good.