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.
