Refer to the information provided in Figure 10.2 below to answer the question(s) that follow. 
Figure 10.2 Refer to Figure 10.2. This firm?s marginal cost curve has shifted from MC1 to MC0. A likely explanation for this is that
A. the demand for the firm?s product increased.
B. the price of a variable input increased.
C. the supply of a variable input increased.
D. the productivity of a variable input increased.
Answer: B
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In privately held firms the manager-stockholder conflict is
A) worse than in the larger firm. B) the same as it is in the larger firm. C) less severe than in the larger firm. D) there is no manager-stockholder conflict because the manager is the owner.
Higher rates of inflation reduce planned spending because:
A. the Fed reacts to the higher inflation by lowering interest rates. B. resources are redistributed from low-spending households to high-spending households. C. the real value of money increases. D. the reduction in wealth, resulting from the reduced real value of money, restricts spending.