How much is the tax?

Consider the two graphs above. Suppose rising fuel costs makes it more expensive to move goods to and from warehouses. This would ________ the desired level of inventories, as depicted in graph ________

A) increase; B B) increase; A C) decrease; B D) decrease; A

In the context of market structure, the characteristic that best describes a monopolistically competitive market is that:

a. there are few firms in the market. b. the products produced cannot be easily differentiated. c. entry and exit are both difficult. d. firms spend a great deal on advertising and promotion. e. firms spend very little on advertising and promotion.