Refer to the information provided in Table 8.7 below to answer the following question(s).
Table 8.7 
Refer to Table 8.7. Assume that fruit baskets are sold in a perfectly competitive market. The market price of a fruit basket is $22. To maximize profits, Exotic Fruit should sell ________ fruit baskets and their profit is ________.
A. three; $5
B. four; $7
C. five; $14
D. six; $14
Answer: D
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During recent Global Economic Crises, consumers' wealth in the U.S. declined as a result of all of the following EXCEPT
A) the stock market crash. B) pricking of the housing bubble. C) increased household borrowing. D) aggressive fiscal policy.
Italy has a comparative advantage in the production of
A. beer.
B. pizza.
C. both beer and pizza.
D. neither beer nor pizza.
The cost of a subsidy to taxpayers is calculated by ______.
a. dividing the subsidy per unit by the number of units subsidized b. multiplying the subsidy per unit times the number of units subsidized c. subtracting the subsidy per unit from the total surplus d. adding the subsidy per unit to the deadweight loss
A policy of average-cost pricing will initially ________ price for a natural monopoly, but as costs increase, price will ________.
A. increase; not change B. decrease; increase C. decrease; not change D. increase; decrease