In the long-run, surviving firms in monopolistic competition ...

[altibaby]

In the long-run, surviving firms in monopolistic competition earn:
 a. higher pure economic profits.
  b. zero pure economic profits.
  c. below-normal profits.
  d. substantial economic losses.

Question 2

Assume Px is the price of good X on the horizontal axis and Py is the price of good Y on the vertical axis. The slope of the budget line equals:
 a. Py / PxY.
  b. PyQy / Px Qx.
  c. (1  Py / Px).
  d. Px / Py.

[bookworm410]

Answer to Question 1

b

Answer to Question 2

d