Which of the following is included in M2 but not in M1?

When a perfectly competitive market is in its long-run equilibrium, the fact that the firms make zero economic profit will

A) encourage new firms to enter the market. B) cause existing firms to shut down. C) cause existing firms to leave the market. D) mean that the firms' owners earn a normal return.

A big problem with fair pricing schemes is that

a. output is lower than if the market were competitive b. prices are higher than if the market were competitive c. firms have no incentive to control costs d. efficiencies result from lack of profit motive e. the marginal cost may not be very low