A business owner applies for a bank loan to launch a fairly low-risk project. After receiving the loan, she cancels the low-risk project and instead uses the borrowed funds for a high-risk venture. This is an example of

The action of arbitrage is

A) the process of buying a currency cheap and selling it dear. B) the process of buying a currency dear and selling it cheap. C) the process of buying and selling currency at the same price. D) the process of selling currency at different prices in different markets. E) the process of buying a currency and holding onto it to take it off the market.

When all perfectly competitive firms in a market or all monopolistically competitive firms in a market make zero economic profit,

a. no firms will enter the market b. all firms will exit the market c. a monopolist will take over the market d. the market demand shifts to the left e. the price of the good produced will increase in the long run