An increase in the money supply is a discretionary fiscal policy which will increase aggregate demand

Refer to Figure 13-14. Which of the following statements describes the firm depicted in the diagram?

A) The firm is making no economic profit and will exit the industry. B) The firm is in long-run equilibrium and is breaking even. C) The firm is suffering an economic loss by producing at Q0 but will break even if it increases its output to Q1. D) The firm achieves productive efficiency by producing at Q0.

The conclusion arrived at from a kinked-demand oligopoly model is that:

a. oligopoly firms cannot maximize their profits. b. oligopoly firms should keep prices at their current level. c. all oligopoly firms should raise prices. d. all oligopoly firms should lower prices. e. oligopoly market structure will lead to lower prices than more competitive industries.