If an individual earns $1,500 a month and spends it evenly throughout the month, transaction balances will average

Monopolistically competitive firms achieve allocative efficiency but not productive efficiency

Indicate whether the statement is true or false

If the price of a product falls below average total cost in the short run, the firm

a. has an economic profit b. cannot cover total fixed costs c. experiences a loss d. must always shut down e. should expand output until MC = MR