A monopolistic competitor is like a monopolist in that:
a. it sells in the inelastic portion of its demand curve.
b. it earns zero economic profit in the long run

Investment spending tends to be closely related to the current pace of economic growth

Indicate whether the statement is true or false

Janelle spends all of her $40 income on songs from iTunes ($1 each) and applications ($4 each) for her iTouch. What is her budget equation?

A) $1 × Qsong - $5 × Qapp = Y B) Qsong = 10 - 4 × Qapp C) $40 + $1 × Qsong = $4 × Qapp D) Qapp = 10 - 1/4 × Qsong