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. The ________ haircut is $16.
A. profit-maximizing price for a
B. profit from each
C. average total cost of a
D. marginal cost of a
Answer: A
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Calculate the elasticity of demand when an increase in supply causes the equilibrium price and quantity to change from $9 and 2,000 to $7 and 3,000, respectively
The following list contains items that are related to aggregate demand and/or aggregate supply.1)Government Spending 2)Consumer Expectations 3)Degree of Excess capacity 4)Personal Income Tax Rates 5)Productivity 6)National Income Abroad 7)Business Taxes 8)Domestic Resource Availability 9)Price of Imported Products 10)Profit Expectations on Investments Refer to the above list. Changes in which of the above two factors would most likely cause a change in aggregate supply?
A. 1 and 5 B. 8 and 9 C. 5 and 7 D. 3 and 10
When marginal cost is increasing:
A. Total cost must be increasing B. Average total cost must be increasing C. Average total cost must be decreasing D. Average fixed cost might be increasing or decreasing
Economic profit is
A. P(q-ATC). B. Pq/ATC. C. (P?ATC)q. D. (P+ATC)q.