An important result in long-run equilibrium in monopolistic competition is that the equilibrium point results in

Refer to the figure above. What is the equilibrium price after the demand curve shifts to D2?

A) $20 B) $40 C) $60 D) $80

Which of the following would be consistent with a decline in labor productivity?

a. Faster growth in capital formation b. Enhanced worker quality c. Decreased manufacturing production d. High federal government budget surpluses