A firm will generally believe that if it increases its spending on R&D its competitors will not follow, but if it decreases its spending they will follow

Reverse causality can create confusion between correlation and causation. What does reverse causality imply?

What will be an ideal response?

Firms in a monopolistically competitive market face ________ demand curves and earn ________ economic profits in the long run

A) downward sloping; zero B) downward sloping; positive C) horizontal; zero D) horizontal; negative