Refer to Figure 5-6. What is the deadweight loss resulting from producing at the market equilibrium?

Krystal runs a nail salon and needs to decide how many hours to stay open. Table 2.2 illustrates her marginal costs of staying open for each additional hour

Suppose that we observe Krystal staying open 5 hours and her marginal benefit of staying open per hour is $36. If she is following the marginal principle, Krystal should A) stay open 1 more hour. B) stay open 2 more hours. C) stay open 1 fewer hour. D) stay open 2 fewer hours.

If identical firms sell an undifferentiated product, advertising is likely to be

A) used to attack the rivals' products. B) collectively undertaken by the industry group. C) strategically aimed at deterring entry. D) focused on secret ingredients.