Economics is the study of the logic of

Suppose that 10,000 people are willing to spend a maximum of $20 each to preserve one acre of rainforest. A conservation group mails out a request to each person asking him or her to mail in $40 to preserve one acre of rainforest. How many acres of rainforest will be preserved with this program?

a. Zero acres b. 1,000 acres c. 5,000 acres d. 10,000 acres e. There is not enough information to answer the question

When the marginal cost of a price-taker firm is more than the market price of its product, the firm should

a. expand output. b. reduce output. c. maintain output. d. charge more than the market price.