Lars has a comparative advantage in grading exams and producing multiple-choice questions. Both b and c are true. Sam is a saver. When a consumer's income falls, her demand for ice cream rises and her demand for chocolate cake falls. Marginal revenue equals marginal cost.
Total revenue divided by quantity equals marginal cost.
All of the above hold. A producer employs 2 units of K and 2 units of L to produce 100 units of output. 4 of each if production exhibits constant returns to scale. Find the profit-maximizing price and quantity. In the course of production the monopolist pollutes the air.