Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. In this industry in the long run,
A. product supply will decrease so prices will go up.
B. firms will enter until all firms break even economically.
C. product demand will increase so that profits are increased.
D. firms will start to incur economic losses.
Answer: B
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If tax revenues equal 25 percent of total output and government expenditures equal 20 percent of total output, then there is a:
A. government budget deficit. B. government budget surplus. C. trade deficit. D. trade surplus.
In the above, a positive relationship between price and quantity is shown in
A) Figure A. B) Figure B. C) both Figure A and Figure B. D) neither Figure A nor Figure B.
Bubba Burgers has discovered there are economies of scope available to the restaurant. Which is most likely to be a response to this discovery?
A) Bubba adds more varied inputs to burger production. B) Bubba expands burger production, focusing on that one good. C) Bubba contracts burger production. D) Bubba adds grilled chicken sandwiches to the menu. E) Bubba cuts back on the diversity of the menu.
When a single firm can supply a product to an entire market at a lower cost than could two or more firms, the industry is called a
a. resource industry. b. exclusive industry. c. government monopoly. d. natural monopoly.