Q. Assume the cpi increases from 110 to 121 also man's nominal income increases from $100,000 to $120,000 over the same period. Manny's real income is

Q. 1. It was assumed which a monopoly would produce at a level which maximizes profits. Can you think of reasons why a monopoly might decide on their own to increase production also lower prices to earn an acceptable profit rather than maximize profits?

2. Discuss the role of advertising also the desired impact on the industry's demand curve. Contrast this to advertising at the industry level (think "Got Milk").