A monopolist produces an output level where marginal revenue equals marginal cost and charges a price where marginal cost equals average total cost

Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:

A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.

Refer to the information provided in Figure 2.4 below to answer the question(s) that follow. Figure 2.4According to Figure 2.4, as the economy moves from Point D to Point B, the opportunity cost of hybrid cars, measured in terms of motorcycles,

A. initially increases, then decreases. B. increases. C. remains constant. D. decreases.