For a monopolistically competitive firm, price equals average revenue

In the circular flow model, profits are considered to be

A) a cost of doing business. B) equal to zero, or else the circular flow would be out of balance. C) a subtraction from the Gross Domestic Product (GDP). D) a form of interest payment.

A U.S. tariff imposed on items that can be produced more cheaply abroad

A) benefits Americans by making these goods cheaper. B) makes the goods more expensive in foreign markets. C) creates a deadweight loss. D) makes the world market more efficient.