Each part of this question will be worth 3 points. State whe…
Each part of this question will be worth 3 points. State whether the following questions are “true” or “false.” You must explain your reasoning to receive full credit. Please record your answer by typing the letter that corresponds to the part you are answering. For example, if you are answering part A, type “A) your answer.” A firm should shut down anytime it earns negative economic profit. Out-of-pocket costs are included in accounting profit calculations, but not economic profit calculations. Over the long-run, price equals marginal cost in both monopolistic competition and perfect competition. When a monopolistically competitive firm faces more competition, the demand for it’s product falls. A perfectly competitive firm faces a downward-sloping demand curve while a monopolistically competitive firm faces a perfectly elastic, or flat demand curve.