In the long run, monopolistically competitive firms earn zero economic profits.

Use the data in the table above and suppose that labor is the only variable factor of production. When 122 dozen donuts are produced at Decent Donuts, the AVC curve

A) has a negative slope. B) has a positive slope. C) is at its minimum point. D) is at its maximum point.

If the marginal propensity to consume is 0.5, the income tax rate is 10%, and income rises by $20,000 . by how much will consumption spending increase?

a. $15,000 b. $10,000 c. $5,000 d. $9,000 e. $1,000