Suppose a monopolist is at the profit-maximizing output level. If the monopolist reduces output: A. both producer surplus and consumer surplus increase. B. producer surplus falls but consumer surplus rises. C. producer surplus rises but consumer surplus falls. D. both producer surplus and consumer surplus decrease.

Carlton industries is considering a new project that they plan to price at $74.00 per unit. the variable costs are estimated at $39.22 per unit and total fixed costs are estimated at $12,085. the initial investment required is $8,000 and the project has an estimated life of 4 years. the firm requires a return of 8 percent. ignore the effect of taxes. what is the degree of operating leverage at the financial break-even level of output?