Letters are used to represent the terms used to answer this question: price (P), quantity of output (Q), total cost (TC) and average total cost (ATC). Which of the following equations is equal to a firm's profit?

Maximum employment and moderate long-term interest rates are best achieved with

A) price stability. B) high and variable inflation rates. C) high real interest rates. D) high and stable inflation rates. E) high short-term interest rates.

Assume the four major grocery stores in a large metropolitan area decide to meet secretly to fix prices for meat. It would be easiest to maintain this arrangement when:

A) the number of additional competitors is very small. B) the cost conditions for the four firms differ substantially. C) individual firms are able to offer secret price discounts to selected buyers. D) demand for meat and fresh vegetables is falling.