Refer to the information provided in Figure 15.4 below to answer the question(s) that follow. 
Figure 15.4 Refer to Figure 15.4. Assume The Hand Made Shirt Shop has fixed costs of $150 and is a monopolistically competitive firm. To maximize profits, the firm ________ of $23.
A. earns a per-unit profit
B. has an average total cost
C. should set a price
D. has an average fixed cost
Answer: C
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Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year. The CPI in the base year would be
A) 85.11. B) 100.0. C) 118.0. D) 348.8.
A "stair-like" market supply curve is the result of
A) higher cost firms charging a higher price for their products. B) firms having different costs. C) firms shutting down in the long run. D) average variable costs that are higher than average fixed costs.
Suppose the demand for a good is currently unit elastic over the relevant range. Then the producer of a substitute good goes out of business and stops producing it. As a result, demand over that range is now likely to be a. Unit elastic
b. Relatively elastic. c. Relatively inelastic. d. Perfectly inelastic.
Macroeconomic equilibrium occurs when:
a. Expected supply equals expected demand. b. Expected leakages equal actual injections. c. Actual leakages equal expected injections. d. Actual supply equals actual demand and actual leakages equal actual injections. e. Expected amount supplied equals expected amount demanded, which means expected leakages equal expected injections.