In a perfectly competitive market, the market demand curve is horizontal

For a monopolistically competitive firm in long run equilibrium: a. marginal revenue equals marginal cost and price equals average cost

b. the economic profits it is earning will soon be competed away by entry. c. accounting profits are zero and price equals marginal cost. d. marginal revenue equals marginal cost and average total cost is minimized.

The money creation formula is oversimplified because it assumes that

a. every recipient of a bank loan will redeposit the proceeds in another bank. b. loan recipients will not take any of the proceeds in cash. c. every bank lends out all excess reserves. d. All of the above are correct.