Refer to the information provided in Figure 15.5 below to answer the question(s) that follow. 
Figure 15.5 Refer to Figure 15.5. If the Custom Sweater Shop is monopolistically competitive, what is the maximum level of average variable cost that would lead to the firm continuing to operate at the profit-maximizing level in the short run?
A. $50
B. $40
C. $46
D. The firm would continue to operate regardless of the level of variable costs.
Answer: C
You might also like to view...
Suppose an economy's money supply is fixed at $4,000 and its nominal GDP is $800,000. Calculate the velocity of money
What will be an ideal response?
Which one of the following people would be counted as unemployed in Canada?
A) a person who has been seeking a job for the last six months, but recently gave up looking because he was discouraged by his job prospects B) a person who will be starting a new job in 6 months C) a person who has been laid off for 10 weeks and is not looking for a job because he is waiting to be called back to his old job D) a person who expects to be laid off by the end of the month before next month's survey can be completed E) a part-time worker who repeatedly expresses a desire to become a full -time worker
The difference between the highest amount a buyer would be willing to pay for a good and the amount she actually pays for it is
A) producers' surplus. B) consumers' surplus. C) marginal revenue. D) marginal utility.
All used cars are lemons or peaches. Owners know whether or not their car is a lemon, but buyers do not; that is, the quality of a car is private information. There are many more buyers than sellers
Buyers value a peach at $4,000 and a lemon at $200; owners value a peach at $3,000 and a lemon at $100 . Owners can have their cars inspected for $100 . If they do have their car inspected, they will receive a certificate that shows whether the car is a lemon or a peach. Show that owners of peaches will have their cars inspected and will sell those cars for $4,000 . Show also that the owners of lemons will not obtain a certificate and will sell their cars for $200 .