All business firms should consider their fixed costs in determining the prices they set

Which of the following statements is true? (i) When a competitive firm sells an additional unit of output, its revenue increases by an amount less than the price. (ii) When a monopoly firm sells an additional unit of output, its revenue increases by an amount less than the price. (iii) Average revenue is the same as price for both competitive and monopoly firms

a. (ii) only b. (iii) only c. (i) and (ii) only d. (ii) and (iii) only

The Condorcet paradox shows that

a. allocations of resources based on majority rule are always inefficient. b. problems in counting votes can negate legitimate democratic outcomes. c. the order on which things are voted can affect the result. d. transitive preferences are inconsistent with rationality.