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. If the firm produces 50 personalized sweatshirts in the short run, it will
A. not cover any of its costs.
B. minimize losses.
C. minimize profits.
D. break even.
Answer: B
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Changes in consumption and investment spending due to changes in the real interest rate alter:
A. induced expenditures. B. the money supply. C. autonomous expenditures. D. money demand.
According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply will
A. lead to an increase in investment spending and a decrease in real GDP that is equal to the increase in investment spending. B. lead to a decrease in investment spending and an increase in real GDP which is greater than the decrease in investment spending. C. lead to an increase in investment spending and an increase in real GDP which is greater than the increase in investment spending. D. lead to a decrease in investment spending and an increase in real GDP that is equal to the decrease in investment spending.
To improve delivery, Joe's Pizza Emporium made a change that involved taking better account of traffic to avoid delays in delivering pizzas. This is an example of
A) positive technological change. B) increasing marginal returns. C) a reduction in fixed costs. D) diseconomies of scale.
When it comes to public goods, it is important to remember
A. the free rider problem is difficult to overcome, but the drop-in-the-bucket problem is not. B. all goods provided by the government are public goods. C. that government intervention necessarily solves the market failure. D. only one level of output can be realized, and consumers are willing to pay different amounts for that level.