When weighing the efficiency of monopolistic competition, which of the following should be considered?

Because the smallcountry monopolist loses the ability to control the market price, consumers enjoy more quantity, competitive prices, and:

a. a bonus because the foreign goods are of higher quality. b. a loss because the monopoly loses profits. c. higher consumer surplus because the monopolist's producer surplus is reduced. d. a loss because now unions have less power than before.

Which of the following is the most likely cause of a recession according to classical and new classical models?

a. government policy. b. unstable expectations. c. a fall in expected profits. d. an anticipated change in the money supply. e. none of the above.