If marginal costs increase, a monopolist will:
a. decrease price and increase output.
b. decrease both price and output.
c. increase price and decrease output.
d. increase both price and output.
e. keep both price and output at the same level.
Question 2
If Allison's marginal utility of her 100th dollar of income is greater than Brad's marginal utility of his 10th dollar, then we can conclude:
a. money means more to Allison.
b. money means more to Brad.
c. Brad is richer than Allison.
d. Allison is richer than Brad.
e. nothing, since we can't make interpersonal utility comparisons.
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The output on this alternator is printed on a label.
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