The above figure shows the demand and cost curves for a firm in monopolistic competition. The graph represents the firm's situation in
A) only the short run.
B) only the long run.
C) either the short run or the long run.
D) neither the short run nor the long run.
A
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An increase in the demand for our exports
a. increases aggregate demand and income by the amount of the investment multiplier. b. increases imports as well, having no impact on aggregate demand. c. increases aggregate demand and income by less than the amount of the investment multiplier. d. does not impact aggregate demand because this is consumption by foreign countries.
A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company decided to alter the
compensation to a percentage of the profit earned per new store. This puts the consultants a. In a less risky position b. A more risky position c. In risk neutral position d. None of the above