Recall the Application about the manufacture of fake killer whales used to scare sea lions off the Washington coast to answer the following question(s).Recall the Application. The mold used to produce the fake killer whales is an indivisible input.

An increase in demand is shown graphically by

A) a shift of the demand curve to the left. B) a movement up along the existing curve. C) a shift of the demand curve to the right. D) a movement down the existing curve.

Monopolistic competition and perfect competition differ because

A) only monopolistically competitive firms will set MR = MC. B) only perfectly competitive firms will set MR = MC. C) only monopolistic competition allows for entry of other firms in the long run. D) only competitive firms take the price as given.