Exhibit 9-3 A monopolistic competitive firm in the long run
?

To maximize long-run profits, the monopolistically competitive firm shown in Exhibit 9-3 will charge a price per unit of:

People sometimes act differently in different settings. An economist is likely to explain this by saying

A) the benefits and costs of certain behaviors can be different in different settings. B) people are hard to figure out. C) people behave as others behave. D) it is hard to figure out what makes people tick. E) none of the above

Most research suggests that the elasticity of the labor supply with respect to taxes is:

A. very low for most people. B. very high for most people. C. highly variable across people. D. unpredictable in most settings.