Refer to the information provided in Figure 9.3 below to answer the question(s) that follow. 
Figure 9.3Refer to Figure 9.3. This firm will ________ if price is between $7 and $13.
A. shut down in the short run, but operate in the long run
B. continue to operate in the short run, but incur an economic loss
C. shut down
D. earn an economic profit
Answer: B
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Define the following: market equilibrium, surplus, and shortage
What will be an ideal response?
If a company that drilled for and produced oil acquired a firm which refined oil into gasoline, this would be referred to as a
A) horizontal merger. B) vertical merger. C) conglomerate merger. D) reverse merger.
Misspecification of functional form of the regression function
A) is overcome by adding the squares of all explanatory variables. B) is more serious in the case of homoskedasticity-only standard error. C) results in a type of omitted variable bias. D) requires alternative estimation methods such as maximum likelihood.
Monopolistic competition is characterized by: a. homogeneous products
b. barriers to entry. c. firms earning economic profits in the long run. d. differentiated products.