Exhibit 10-3 A monopolistic competitive firm in the long run
To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 10-3 will charge a price per unit of:

An increase in human capital

a. is of secondary importance to economic growth compared to physical capital. b. causes the production function to shift downward and become flatter. c. causes the production function to shift upward. d. causes the production function to shift downward. e. can be separated from labor.

Economists in the field of industrial organization study how

a. central banking policies affect financial markets. b. firms' demand for labor and individuals' supply of labor affect resource markets. c. firms' decisions about prices and quantities depend on market conditions. d. externalities and public goods affect the environment.