Higher tax rates lower the value of the spending multiplier and make the economy more susceptible to shocks

Bob's Lawn Care Services is a perfectly competitive firm that currently mows 22 lawns a week. Bob's marginal cost exceeds the price he charges. Bob can increase his profit if he

A) charges a higher price. B) charges a lower price. C) mows fewer than 22 lawns a week. D) mows more than 22 lawns a week.

Monopolistic competitors have _______ rivals who produce _________ goods and services.

A. no; identical B. many; identical C. many; close substitute D. None of the choices are correct.