Refer to the information provided in Figure 13.5 below to answer the question that follows. 
Figure 13.5 Refer to Figure 13.5. The Silver Exchange has a monopoly over the sale of solid silver walking sticks. The Silver Exchange has hired you as an economic consultant. You should advise this monopolist to
A. produce in the short run but exit the industry in the long run.
B. shut down in the short run but expand capacity in the long run.
C. shut down in the short run and exit the industry in the long run.
D. produce in the short run and expand capacity in the long run.
Answer: C
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The slope of the saving function is the
A) APC. B) MPC. C) APS. D) MPS.
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Indicate whether the statement is true or false
The equilibrium price is best defined as the price at which: a. demand is smaller than supply
b. suppliers want to supply more goods. c. demanders want to buy more goods. d. quantity demanded is equal to quantity supplied. e. the quantity demanded increases.
Other things remaining unchanged, the flatter the aggregate supply curve:
a. the greater the expansionary effect of an increase in aggregate demand. b. the smaller the inflationary effect of an increase in aggregate demand. c. the greater the recessionary effect of a decrease in aggregate demand. d. the greater the expansionary effect of a decrease in aggregate demand. e. the smaller the recessionary effect of an increase in aggregate demand.