Refer to the graph shown. The profits earned by the monopolistically competitive firm represented equal:

If government expenditure on goods and services increases by $10 billion, then aggregate demand

A) increases by $10 billion. B) increases by $10 billion multiplied by the government expenditure multiplier. C) increases by $10 billion multiplied by the tax multiplier. D) decreases by $10 billion. E) decreases by $10 billion multiplied by the government expenditure multiplier.

Refer to Scenario 10.7. How many ink pads will be produced to maximize revenue?

A) 0 B) 250 C) 300 D) 500 E) none of the above