Cost-push inflation can be started by
A) a decrease in the money wage rate.
B) an increase in the money prices of raw materials.
C) an increase in the quantity of money.
D) an increase in government expenditure on goods and services.
E) a decrease in government expenditure on goods and services.
B
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The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, the amount of enrollment is
A) efficient. B) inefficient because marginal social cost exceeds marginal social benefit. C) inefficient because marginal social benefit exceeds marginal social cost. D) inefficient because the quantity of education demanded exceeds the quantity of education supplied.
The table below shows the demand and cost data facing "Velvet Touches," a monopolistically competitive producer of velvet throw pillows
Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost 1 $30 $32 2 28 43 3 26 53 4 24 64 5 22 76 6 20 90 7 18 106 8 16 126 Use the data to answer the following questions. a. Complete the Total Revenue (TR), Marginal Revenue (MR), and Marginal Cost (MC) columns above. b. What are the profit-maximizing price and quantity for Velvet Touches? c. Is the firm making a profit or a loss? How much is the profit or loss? Show your work. d. Is this firm operating in the long run or in the short run? Explain your answer. e. If the firm's profit or loss is typical of all firms in the market for throw pillows, what is likely to happen in the future? Will there be more firms or will some existing firms leave the industry? Explain your answer. f. What will happen to the typical firm's profit or loss after all entry/exit adjustments?