Suppose in the city of Blacksburg, music stores operate in a monopolistically competitive market. If the price of Blu-ray discs in Blacksburg is currently equal to $20 each and the average cost of Blu-ray discs is $15, in the long run we expect the price of Blu-ray discs to:

If capital is fixed, but a firm varies labor

A) the firm stays on the same isoquant. B) the firm moves to a new isoquant. C) the firm might move to a new isoquant, depending on how much labor is added. D) the firm's output will be dependent on the marginal rate of technical substitution.

If net exports are negative, then aggregate demand will be less than the sum of consumption, investment, and government purchases

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