For the monopoly in the above figure, if the firm is currently producing 700 units, which of the following is correct?
A. It is maximizing its profits.
B. It is incurring a loss.
C. It could earn higher profits if it produced more units each day.
D. It could earn higher profits if it produced fewer units each day.
Answer: D
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Antitrust legislation prohibits a person from being on the board of directors of more than one firm at any time
Indicate whether the statement is true or false
Which of the following is a difference between the income effect and the substitution effect?
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