The number of people receiving Medicare is expected to grow to 74 million by the year

At the profit-maximizing level of output for a perfectly competitive firm

A) average revenue equals average variable cost and price equals marginal cost. B) marginal revenue equals marginal cost and average total cost equals average fixed cost. C) price equals marginal cost. D) price equals average revenue and marginal cost equals average variable cost.

A monopolistically competitive firm is currently earning a positive economic profit. If other firms enter the market, we would expect that the added competition will cause this firm to adjust its output such that it

a. will operate closer to its efficient scale. b. will operate further from its efficient scale. c. will no longer be at its efficient scale. d. might move either closer to or further from its efficient scale.