Which answer below CORRECTLY describes the relationship between the demand for labor curve and the value of marginal product curve?
A) The curves intersect to determine the equilibrium quantity of labor.
B) The value of marginal product curve lies to the right and above the demand for labor curve.
C) The curves are the same.
D) The value of marginal product curve lies to the left of the demand for labor curve.
Question 2
In monopolistic competition, firms can make an economic profit in
A) the short run and in the long run.
B) the short run but not in the long run.
C) the long run but not in the short run.
D) neither the long run nor the short run.
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