Economists like Hernando de Soto feel that a ________ is the key to economic development.

As new firms enter a monopolistically competitive market, profits of existing firms ____ and product diversity in the market ____

a. decline; decreases b. rise; decreases c. rise; increases d. decline; increases

The main reason that finished goods are scarce is that

a. raw material resources are scarce. b. factories are not operated efficiently. c. distribution systems are clogged. d. taxes are destroying work incentives. e. All of the above are correct.