In long-run equilibrium, each monopolistically competitive firm can earn positive economic profits due to economies of scale

If, at the current exchange rate between the dollar and the South African rand of 6.92 rand per dollar, the dollar is "undervalued," how do you expect demand and supply in the foreign exchange markets to respond?

A) The supply of the dollar will fall, while the demand for the rand will rise. B) The demand for the dollar will rise, while the supply of the rand will fall. C) The demand for the dollar will fall, while the supply of the rand will rise. D) The demand for the dollar will rise, while the supply of the rand will rise.

In the long run which of the following is true?

A) There are no fixed costs. B) The size of a firm's physical plant can be changed but the firm cannot adopt new technology. C) The firm can vary its explicit costs but not its implicit costs. D) Total cost = fixed cost + variable cost.