In long-run monopolistic competition, firms earn zero economic profit

When the price of a product exceeds the marginal cost of producing it, producers have a

A) consumer surplus. B) producer surplus. C) consumer shortage. D) producer shortage. E) deadweight surplus.

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity. B) Discouraged workers leave the labor force, and this makes the unemployment rate rise. C) Discouraged workers return to the labor force, and this makes the unemployment rate fall. D) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.