9. Liz Onnia operates a small Italian restaurant in a large city. Operating in the monopolistically competitive restaurant industry means that a) her economics profits in the long run will be pushed to $0. b) her MR curve will lie above her Demand curve, except at the first unit of output. c) she is likely to experience "excess capacity" at her restaurant. d) both a. and c. will occur, but not b. 10. The demand curve facing a monopoly is negatively sloped but is rather inelastic because: a) quantity demanded doesn't change at all when price increases b) there are no good substitutes for the product produced by the monopolist. c ) customers have no loyalty to the product. d) there are only very weak barriers to the entry of new firms into a monopoly market. (NEXT PAGE) Problem Set #3 -- Dunbar p. 4 11. In which market structure will a firm choose to stay in business (ie. not shut down) when P