The law of diminishing marginal returns describes changes in output when inputs change

Suppose you can earn 5 percent on your savings account if you deposit $500 in it. The inflation rate is 3 percent. The opportunity cost of holding the $500 as money is

A) $100. B) $525. C) $80. D) $30. E) $25.

In a competitive market where firms are earning economic losses, which of the following should be expected as the industry moves to long-run equilibrium, ceteris paribus?

A. A lower price and fewer firms. B. A lower price and more firms. C. A higher price and more firms. D. A higher price and fewer firms.