Refer to the graphs below. They show the long-run average total cost (LRATC) for a product. For which graph would a firm experience first economies and then diseconomies of scale over its range of output?

The fact that the aggregate demand curve slopes downward means that aggregate expenditures increase when the price level decreases

a. True b. False Indicate whether the statement is true or false

The process of entry and exit into a monopolistically competitive market continues until:

A. profits are positive. B. profits are negative. C. profits are zero. D. Any of these statements could be true.