1)Which of the following will lead to a decrease in the equilibrium mark-up?

A) A lower expected long-run corporate tax rate.

B) An increase in government regulation.

C) An increase in political instability.

D) An increase in the expected long-run cost of imported materials.

2)As a result of the diffusion of new technology, in the long run we would normally expect:

A) The price-setting curve to shift downwards.

B) The price-setting curve to slope downward more steeply.

C) The price-setting curve to shift upwards.

D) An increase in unemployment