Least squares regression minimizes the sum of the absolute errors

A monopolistically competitive firm

A) cannot make a positive economic profit in the long run because of entry. B) can make a positive economic profit in the long run because it sells a differentiated good. C) can make a positive economic profit in the long run because there are only a few firms in the industry. D) cannot make a positive economic profit in the long run because it sells a homogeneous good.

Refer to Figure 4-1. If the market price is $2.50, what is the consumer surplus on the third ice cream cone?

A) $0 B) $0.50 C) $1.50 D) $2.50