Consumers value the product-specific services for a new smartphone at $20 and the marginal cost to the retailers for providing the product-specific services is $20. If the retailers provide the product-specific services, which of the following is true?
A) The shift in the market demand will equal the shift in the market supply.
B) The shift in the market demand will be exactly double the shift in the market supply.
C) The shift in the market supply will exceed the shift in the market demand.
D) The shift in the market demand will exceed the shift in the market supply.
A) The shift in the market demand will equal the shift in the market supply.
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The optimal level of air quality will increase if
a. the cost of polluting increases b. pollution is found to be self-absorbing c. a new process allows pollution to be removed more cheaply d. the marginal social cost of air quality increases e. the marginal social benefit of air quality decreases
At any point where a monopolist's marginal revenue is positive, the downward-sloping straight-line demand curve is:
a. perfectly elastic. b. elastic, but not perfectly elastic. c. unit elastic. d. inelastic.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. positive supply side shock. B. negative supply side shock. C. positive demand side shock. D. negative demand side shock.
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. 
Figure 13.10 Refer to Figure 13.10. If Armstrong Cable ________, it will incur a loss of $1,250.
A. charges a price of $16 per subscriber B. shuts down C. charges any price below the profit-maximizing price D. is forced to sell the efficient level output