The above figure shows a firm in monopolistic competition. At the profit maximizing level of output, excess capacity for the firm is equal to

Hurricane Katrina damaged a large portion of oil refining and pipeline capacity in the Gulf coast states. In the market for gasoline

A) the demand curve shifted to the left resulting in a decrease in the equilibrium price. B) the supply curve shifted to the left resulting in an increase in the equilibrium price. C) the demand curve shifted to the right resulting in an increase in the equilibrium price. D) the supply curve shifted to the right resulting in an increase in the equilibrium price.

The production function Y = AKbN1-b written in terms of growth rates is

A) y = a - bk - (1 - b)n. B) y = a + bk + (1 - b)n. C) y = a - bk + (1 - b)n. D) y = a + bk - (1 +b)n.