Money supply would expand if people chose to hold borrowed funds in cash rather than in checking accounts

In the game in Scenario 13.3, the equilibrium outcome:

A) is for Moto to offer a CD changer and Zport to offer low-profile tires. B) is for Moto to offer a CD changer and Zport to offer a sun roof. C) is for Moto to offer free maintenance and Zport to offer low-profile tires. D) is for Moto to offer free maintenance and Zport to offer a sunroof. E) does not exist in pure strategies.

In the long run, a competitive firm will earn zero economic profit

a. True b. False Indicate whether the statement is true or false