A firm in long-run equilibrium under monopolistic competition will earn
A) zero economic profits because of free entry.
B) positive monopoly profits because each sells a differentiated product.
C) positive oligopoly profits because each firm sells a differentiated product.
D) negative economic profits because it has economies of scale.
E) positive economic profit if it engages in international trade.
Question 2
________ is the largest international debtor in the world.
A) Brazil
B) Mexico
C) Italy
D) The United States
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