If firms in a monopolistically competitive industry are earning economic profits, then in the long run
A. new firms producing close substitutes will enter the industry and this entry will continue until economic profits are eliminated.
B. these firms can continue earning economic profits because entry into the industry is blocked.
C. new firms producing the exact same product will enter the industry and this entry will continue until economic profits are eliminated.
D. the government will most likely regulate firms in this industry to reduce these economic profits.
A. new firms producing close substitutes will enter the industry and this entry will continue until economic profits are eliminated.
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Refer to the figure below. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per week. 
A. decrease; 20 B. increase; 40 C. increase; 20 D. decrease; 40
In an industry with a large number of firms,
A) each firm will produce a large quantity, relative to market demand. B) one firm will dominate the market. C) collusion is impossible. D) competition is eliminated. E) barriers to exit must exist.
A monopolist's demand curve is the same as the marginal revenue curve for the product
Indicate whether the statement is true or false
According to the Phillips Curve, which of the following may have taken place if both the unemployment rate and inflation have risen?
A) a negative supply shock B) an increase in expected inflation C) a severe recession D) a negative demand shock