The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:

Refer to Figure 16-5. Suppose the firm represented in the diagram decides to use a two-part pricing strategy such that it charges a fixed fee and a per-unit price equal to the monopoly price. What is the quantity it should produce?

A) 240 units B) 320 units C) 480 units D) 560 units

Subsidies are payments made by the government of a country to:

a. foreign firms to encourage imports. b. foreign firms to encourage domestic exports. c. domestic firms to encourage exports. d. domestic firms to encourage imports. e. domestic firms to ensure domestic consumption of their goods.