The above figure shows the demand and cost curves for a monopolistically competitive firm in the long run. The firm maximizes its profit by
A) producing 8 units and charging a price of $5.
B) producing 8 units and charging a price of $15.
C) producing 16 units and charging a price of $10.
D) producing 20 units and charging a price of $25.
B
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Dynamic tax analysis generally predicts
A) that the higher the tax rate is, the higher the tax revenue will continue to be into the future. B) that the higher tax rates lead to higher revenues only to a point at which revenues will begin to decrease due to a diminishing tax base. C) that lower tax rates will always and continuously lead to increased tax revenues. D) that lower tax rates are always going to lead to decreased tax revenues.
The actions of borrowers and lenders are coordinated by
a. the interest rate in the loanable funds market. b. the government in the resources market. c. businesses in the resources market. d. the interest rate in the goods and services market.