Primarily markets, not politics, determine the level of "merit goods" provision

In the long run, what level of economic profits can a monopolistic competitor expect to receive?

A) positive B) zero C) negative D) either negative or positive, depending on the demand for its product and its costs

An increase in the price of good X causes the demand for good Y to shift inward. One can conclude that X and Y are:

a. complements. b. substitutes. c. unrelated goods. d. normal goods. e. exceptions to the law of demand.