Studies show that smoking cigars is inversely related to income. Thus cigars are an inferior good

Monopolistically competitive firms ignore the effect of their decisions upon other firms in the industry because

a. each firm is large relative to the market b. each firm is small relative to the market c. there are few sellers in the market d. there is only one seller in the market e. all firms follow the same known pricing rules

Competitive firms that maximize profits will hire workers until the value of the marginal product of labor

a. equals the wage. b. equals the price of the final good. c. begins to fall. d. begins to rise.