A usury rate is like a price ceiling

In the long run, firms in monopolistic competition earn zero economic profit. When firms earn zero economic profit, in the long run they exit the industry

A) The first sentence is correct and the second sentence is incorrect. B) The first sentence is incorrect and the second sentence is correct. C) Both sentences are correct. D) Both sentences are incorrect. E) More information about the presence or absence of barriers to entry and exit is needed to determine if the statements are true or false.

Refer to Figure 22-1. Using the per-worker production function in the figure above, the largest changes in an economy's standard of living would be achieved by a movement from

A) B to C to D. B) D to C to B. C) A to B to C. D) C to B to A.