The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

Lara will agree to a second date with Tom only if, on their first date, Tom is well mannered and well dressed. Lara is using a

a. Screening mechanism b. Signaling mechanism c. All of the above d. None of the above

A monopolist will maximize profits by

a. setting the price at the level that will maximize per-unit profit. b. producing the output where marginal revenue equals total cost and charging a price along the demand curve. c. selling at the price on the demand curve at the output rate where marginal revenue equals marginal cost. d. producing at the output rate where price equals marginal cost.