Refer to the information provided in Figure 15.5 below to answer the question(s) that follow.  Figure 15.5 Refer to Figure 15.5. If the Custom Sweater Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?

A binding price ceiling (i) causes a surplus. (ii) causes a shortage. (iii) is set at a price above the equilibrium price. (iv) is set at a price below the equilibrium price

a. (ii) only b. (iv) only c. (i) and (iii) only d. (ii) and (iv) only

The goal of liberalism is to

a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to improve the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.