Refer to the above graph. Consider a monopolist in short-run equilibrium. This monopolist:
A. has a loss per unit equal to DE.
B. will cease production since its economic profits are negative.
C. earns economic profit equal to area ABED.
D. has total fixed costs equal to area BEFC.
Answer: A
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A health club sells 50 memberships when the monthly price is $60 and 70 memberships when the monthly price is $40 . Using the method of average values, the price elasticity of demand for memberships at this health club is
a. 6.00 b. 0.10 c. 1.00 d. 0.25 e. 0.83
Which statement is definitely true about shelter in the above below? 
A. It has a positively sloped section in its demand curve. B. It is a normal good throughout the range shown. C. It is an inferior good throughout the range shown. D. The income and substitution effects must be shown before any of these statements can be definitely true.
Missy Knowles is in charge of all technical developments at Gumby Polymer Rubber. She makes all the choices concerning product innovations in the company. She finds that she is overworked and that several of her research chemists seem to be spending work hours playing golf. What managerial advice would you provide to Gumby Polymer Rubber (GPR)? Clearly explain your reasoning.
What will be an ideal response?
All of the following are possible explanations for why it took so long for trade balances to respond to the depreciation of the dollar EXCEPT
A) the prior increase in the value of the dollar had padded the profit margins of foreign producers. B) foreign trade barriers made it impossible for the United States to substantially expand exports it bought. C) there were still impacts from earlier appreciations working through the system. D) exports began to increase from a much lower base than imports.