Refer to Figure 9.1. Assume the economy is initially at point A. The initial change from a shock that increases investment expenditure is best represented by which short-run equilibrium combination of price level and real GDP?

In the long run in monopolistic competition, firms

A) can earn an economic profit. B) incur an economic loss. C) can earn zero economic profit but not an economic profit. D) shut down if they are earning zero economic profit. E) earn either an economic profit or zero economic profit.

Marginal cost is ____________

a. The revenue from selling an additional unit of output b. none of the above c. The total cost of production d. The cost of producing an additional unit of output