As new monopolistically competitive firms enter the market, the demand facing each firm __________, causing the price charged by each firm to __________. In the long run, each firm will earn a __________ profit.
a. falls; rise; positive
b. rises; fall; positive
c. falls; rise; normal
d. rises; fall; normal
e. falls; fall; normal
Question 2
Many eligible voters do not vote, and many who do vote don't read the biographies of candidates before they vote. These are examples of
a. the median-voter model
b. representative government
c. rational ignorance
d. stupidity
e. laziness
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