Which of the following suggests that a competitive firm earns zero economic profits?

A baker of chocolate chip cookies is likely to have a ______________ price elasticity of supply than does the seller of rare baseball cards due to ______________.

A. more elastic; the availability of inputs B. less elastic; the availability of inputs C. less elastic; a shorter adjustment time D. less elastic; a more flexible production process

If the price of a cup of Dunkin' Donuts coffee increases while the price of a Starbucks latte is unchanged, we expect the number of lattes purchased at Starbucks to:

A. increase as some people switch from Dunkin' Donuts coffee to Starbucks lattes. B. decrease as some people switch from Dunkin' Donuts coffee to the Starbucks lattes. C. decrease as some people have less money to spend on caffeinated beverages. D. decrease as some people switch from Starbucks lattes to Dunkin' Donuts coffee.