The above figure shows the situation of a monopolistic competitor in the short run. The maximum economic profits of the firm equal

GDP does not include which of the following activities?

A.  Businesses installing anti-pollution equipment B.  Households spending to enhance security of their neighborhoods C.  Couples remodeling their own homes D.  Families eating out in restaurants

The goal of product differentiation and advertising in monopolistic competition is to make

A. price more of a factor and product differences less of a factor in consumer purchases. B. price less of a factor and product differences more of a factor in consumer purchases. C. the firm productively efficient even if it is not allocatively efficient. D. the firm allocatively efficient even if it is not productively efficient.