A single-price monopolist faces a linear demand curve and no marginal costs. It maximises profits where...

a.Revenue is maximised.

b.Price elasticity of demand = -1.

c.All of the other options are correct.

d.MR = MC.

A perfectly competitive firm operates in the long run where...

a.All of the other options are correct.

b. P = min ATC.

c. P = MC.

d. ATC = MC.

If quantity of pizza is measured on the horizontal axis and quantity of hamburgers is measured on the vertical axis, an increase in the price of hamburgers...

a.Increases the size of the affordable set.

b.Increases the budget constraint's vertical intercept.

c.Increases the budget constraint's horizontal intercept.

d.Decreases the size of the affordable set.