Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:

Refer to the scenario above. What is the net present value of the investment?

A) -$7,112.36 B) -$5,365.10 C) -$475.31 D) $9,524.19

As the number of firms in an industry increases, the residual demand curve becomes

A) more elastic. B) less elastic. C) larger. D) vertical.