"As part of the financial crisis bailout plan in 2009, the Federal Reserve bought stakes in banks. This policy will result in an increase in the inflation rate." This is an example of

The money cost of a particular good will approximate its opportunity cost if

A. there are serious distortions in the market. B. the market functions well. C. there is much specialization in the market. D. nations are exploiting the law of comparative advantage.

Profits for the monopolistically competitive firm depicted in Figure 8.1:

A. will increase in the long run. B. will not change in the long run. C. will decrease in the long run. D. are impossible to predict in the long run.