Which one of the following is not a danger of experimenting with pricing for an oligopoly?
A. Firms matching price reductions.
B. The uncertainty of competitor response.
C. Product differentiation.
D. Retaliation.
Answer: C
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A firm has excess capacity if its output is
A) less than the quantity at which marginal cost is minimized. B) less than the quantity at which economic profit is maximized. C) less than the quantity at which average total cost is minimized. D) more than the quantity at which average total cost is minimized.
The international trade response to a contractionary monetary policy will cause aggregate demand to shift ____ and aggregate supply to shift ____.
A. outward; outward B. inward; outward C. outward; inward D. inward; inward
Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should set a price of
A. $18. B. $22. C. $23. D. $25.
Many products come with a warning about how to use the product without harming other people. Why?
What will be an ideal response?