In the short run, a firm operating as a monopolistic competitor will produce to the point at which
A) MR = ATC.
B) MC = ATC.
C) P = MC.
D) MR = MC.
D
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Suppose Jordan and Lee are trying to decide what to do on a Friday. Jordan would prefer to see a comedy while Lee would prefer to see a documentary. One documentary and one comedy are showing at the local cinema. The payoffs they receive from seeing the films either together or separately are shown in the payoff matrix below. Both Jordan and Lee know the information contained in the payoff matrix. They purchase their tickets simultaneously, ignorant of the other's choice. 
Which of the following statements is true?
A. Both the lower-left and upper right cells are Nash equilibria. B. The upper-right cell is the only Nash equilibrium. C. The lower-left cell is the only Nash equilibrium. D. Both the upper-left and lower-right cells are Nash equilibria.
Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
The figure above shows the costs and benefits associated with producing paper. What is the efficient level of output?
A) 0 B) 4 tons C) 6 tons D) More than 6 tons E) None of the above answers is correct.
If the price of apples went up by 25 percent, which of the following values of the cross price elasticity for oranges would be most reasonable to anticipate?
A) 0.0 B) 1.2 C) -2.5 D) -1.0