A positive relationship between the rate of change in money prices and real GDP is

A profit-maximizing firm will increase its use of capital and decrease its use of labour when the:

a) marginal product of capital is higher than the marginal product of labour. b) marginal product of capital, per dollar spent on capital, is less than the marginal product of labour, per dollar spent on labour. c) average product of capital is higher than the average product of labour. d) total product of capital is higher than the total product of labour. e) marginal product of capital, per dollar spent on capital, is greater than the marginal product of labour, per dollar spent on labour.

Monopolistic competition is defined as a type of market structure where

A) many firms produce the good. B) firms produce a homogeneous good. C) there are barriers to entry. D) firms can earn positive profit in the long run.