Refer to the information provided in Figure 15.1 below to answer the question(s) that follow. Below are cost curves for Dom's Barber Shop, a monopolistically competitive firm. 
Figure 15.1 Refer to Figure 15.1. In this industry in the long run,
A. firms will start to incur economic losses.
B. product supply will decrease so prices will go up.
C. firms will enter until all firms break even economically.
D. product demand will increase so that profits are increased.
Answer: C
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How does De Beers maintain a near-monopoly on diamonds?
a. De Beers owns most of the world's diamond mines. b. De Beers limits the number of diamonds produced at mines it does not own by controlling wholesaler access to diamonds. c. De Beers has a 60-year old patent on cutting diamonds, and so is the only source of diamonds to U.S. jewelry stores. d. De Beers is the only diamond manufacturer which has a license for retail sale of diamonds.
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C