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. Assume the Custom Sweater Shop has fixed costs of $500 and is a monopolistically competitive firm. To maximize profits in the short run, this firm should produce ________ personalized sweaters.
A. 0
B. 100
C. 140
D. 150
Answer: B
You might also like to view...
Why do economists abstract, and is it appropriate?
What will be an ideal response?
What is the primary difference between the substitution and the income effect of a price change?
A) The substitution effect holds income constant and the income effect holds utility constant. B) The substitution effect is always positive and the income effect is always negative. C) The substitution effect holds utility constant and the income effect holds prices constant. D) The substitution effect is always negative and the income effect is always positive.
The prisoner's dilemma is a game in which: a. the gains from pursuing self-interest are greater than the gains from cooperation
b. the gains from cooperation are greater than the gains from pursuing self-interest. c. the gains from pursuing self-interest are greater for a smaller firm than for a larger firm. d. the gains from pursuing self-interest are greater for a larger firm than for a smaller firm.
Which of the following would be considered a supply-side policy?
A. an increase in government regulations that require businesses to internalize pollution costs B. decreasing taxes to increase the incentive to work C. an increase in government spending that would lead to increased aggregate demand D. increasing the amount of Social Security contributions paid by businesses to help fund the Social Security program