The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00 . The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3 . The price of a 1975 tennis ball in 2005 dollars is

Refer to Figure 12-1. If the firm is producing 700 units

A) it should cut back its output to maximize profit. B) it is making a loss. C) it is making a profit. D) it should increase its output to maximize profit.

The short-run equilibrium for a monopolistically competitive firm is at P = $28.47, ATC = $22.13, and MC = MR = $17.47 . Which of the following is true?

a. Per-unit profit is $11. b. Additional firms will be attracted into the industry. c. The firm could raise price and increase profits. d. The firm could lower price and increase profits. e. Average cost must be rising.