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.
Answer: C
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Hong Kong chooses to have ________ and ________ and therefore, cannot have an independent monetary policy at the same time
A) capital control; a fixed exchange rate B) free capital mobility; a fixed exchange rate C) free capital mobility; a flexible exchange rate D) capital control; a flexible exchange rate
An inferior good or service is any good or service for which an increase in income causes a decrease in demand
a. True b. False Indicate whether the statement is true or false
If the FOMC purchases government bonds priced at $5,000 from a bond dealer who banks at National Bank, and if the reserve requirement is 20 percent, then the required reserves of National Bank:
a. increase by $5,000. b. increase by $4,000. c. increase by $1,000. d. decrease by $5,000. e. decrease by $1,000.
An industry having a four-firm concentration ratio of 30 percent
a. is monopolistically competitive b. approximates pure competition. c. is a pure monopoly. d. is an oligopoly.