When a market is monopolistically competitive, the typical firm in the market can earn

a. positive profit in the short run and in the long run.

b. positive or negative profit in the short run and a zero profit in the long run.

c. zero profit in the short run and a positive or negative profit in the long run.

d. zero profit in the short run and in the long run.

When a market is monopolistically competitive, the typical firm in the market is likely to experience a positive or negative profit in the short run and a zero profit in the long run.

The firm with short run profits only breaks in the long run due to the decrease in demand which in turn increases the total cost.  This means that in long run, the monopolistically competitive firm will make zero economic profit.

Monopolistically competitive model is the term used when many firms are selling the same products but not identical due to which any other firm can act as a substitute for others. Due to this if any firm raises the price then the  customers would switch to other firms. Hence the typical firm can maximize the profit by producing the quantity in which the marginal revenue equals marginal cost.

9) a & b

10) true.

11) false.

12) false.

13) true.

14) false.

15) true.

16) true.

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panem is a communist totalitarian dictatorship where all the resources and how they are allocated belongs to the capitol. the districts exist only to provide goods and services for the capital and most of the citizens live in poverty. it is a police state where the "peacekeepers" use force and threats to keep the people under control. dissent is outlawed and those who disobey the law are executed, flogged, or turned into avoxes. the games are another means in which the ruling elite in the capitol exert their power over the districts. when reading the books i drew parallels between panem and the soviet union and north korea. in no way is panem capitalist. the people in the capitol are wealthy but the majority of them are involved in the government somehow. it was the same way in the former soviet union where bigwigs in the communist party and high ranking government officials were given access to goods, services, medical treatments not available to the general public. if you think panem has a capitalist economy you need to brush up on your economics.