In the long run, firms in a monopolistically competitive market operate at:
A. an efficient scale.
B. a less-than-efficient scale.
C. a more-than-efficient scale.
D. Any of these could be true, depending on the individual firm.
B. a less-than-efficient scale.
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A profit-maximizing firm in a monopolistically competitive market can earn positive, negative, or zero profits in the short run
a. True b. False Indicate whether the statement is true or false
An expected rise in the rate of inflation for consumer goods will:
A. decrease current aggregate supply. B. increase current aggregate demand. C. increase current aggregate supply. D. decrease current aggregate demand.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. If labor supply is given by S0 and the firm is using K1 units of capital, this firm should hire ________ units of labor to maximize profit.
A. I0 B. I1 C. I2 D. I3
Refer to Figure 28-9. Fed Chairman Paul Volcker's response to high inflation of the late 1970s is depicted in the figure above as a movement from
A) A to D to C. B) A to B to C. C) C to E to B. D) C to D to A. E) C to B to A.