Refer to Table 11-7. What is the average total cost of production when the firm produces 120 lanterns?

Compared to free trade, a ban on imports of a good

A) increases the domestic price of the good. B) decreases consumer surplus. C) results in a deadweight loss. D) All of the above.

Phillip is a mortgage broker, who is paid by commission. When interest rates decline, he does a lot of business and earns a lot of money, as more people buy houses or refinance their mortgages. But when interest rates rise, business falls substantially. To diversify, Phillip should choose investments that

a. provide a higher return than the market average. b. provide a lower return than the market average. c. pay higher returns when interest rates rise and lower returns when interest rates fall. d. pay lower returns when interest rates rise and higher returns when interest rates fall.