Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:

Which of the following is true of a typical firm in a monopolistically competitive industry?

A) All firms have identical cost structures. B) Product differentiation allows a successful firm to emerge as a market leader in the industry. C) Each firm acts independently. D) The more successful firms have an incentive to merge in order to exert greater market power.

Most economists agree that the focus of fiscal policy is to

a. plan the economy. b. balance aggregate demand and aggregate supply. c. balance the federal budget. d. balance environmental needs and resources.