When considering whether or not to consume a second slice of cake, an individual is following marginal thinking if she compares the total cost of consuming both the first and second slices with their total benefit before making a decision

When the price elasticity of demand is calculated, if price increases, quantity demanded decreases and if price decreases, quantity demanded increases so the result will be

a. positive when price increases and negative when it decreases b. negative when price increases and positive when it decreases c. greater than one when price increases and less than one when it decreases d. less than one when price increases and greater than one when it decreases e. negative whether we look at a price increase or decrease

Which of the following conditions is characteristic of a monopolistically competitive firm in long-run equilibrium?

a. P > MR and P = MC b. ATC = demand and MR = MC c. P < MC and demand = ATC d. P > ATC and demand > MR