In the long run, a monopolistically competitive firm will find
a. its demand curve shifting until price equals average total cost
b. its cost curve shifting until price equals average total cost
c. its demand curve shifting until marginal revenue equals marginal cost
d. its cost curve shifting until marginal revenue equals marginal cost
e. no changes in its demand or cost curves if it is earning an economic profit
Question 2
Rational ignorance helps explain why
a. legislators often trade votes on key issues to produce positive-sum games between them
b. legislators usually disregard the desires of those constituencies that cannot influence their chances for reelection
c. voters spend considerable time and effort to gather information to protect themselves against legislators with hidden agendas
d. it is rational for legislators to ignore the wishes and desires of all of their constituents
e. voters may choose to remain ignorant of issues when there are large costs associated with becoming informed
Solution (Polynomial Long Division)
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