Suppose that the price of a coffee mug is $2. Lee's marginal cost of producing coffee mugs $0.50 for the first mug, Tammy's marginal cost of producing coffee mugs is $1 for the second mug, Stan's marginal cost of producing coffee mugs is $1.50 for the third mug, Joy's marginal cost of producing coffee mugs is $2 for the fourth mug, and Jody's marginal cost of producing coffee mugs is $3 for the fifth mug. In equilibrium, what is the producer surplus from producing coffee mugs?
A. $0
B. $2
C. $3
D. $6
Answer: C
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The total value of government securities held by individuals, businesses, government agencies, and the Federal Reserve is known as
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The short-run Phillips curve is the relation between inflation and unemployment that holds for a given natural rate of unemployment and a
A. given level of unemployment. B. given expected rate of inflation. C. given rate of inflation. D. given expected level of unemployment.