For her restaurant under the assumptions of information, network effects, status effects, there is no downward sloping demand curve because in some cases it can be upward sloping. ii. If demand curves slope up, will there be an equilibrium between supply and demand? There can be no economically meaningful equilibrium if the demand curve slopes upward. b. (2 points} Can a perfectly competitive business survive? Before a single plane was built, Boeing spent as much as $50 billion on the '78? Dreamliner. Planes can then be made at a relatively low cost. i. If Boeing sells planes at marginal cost, will it be able to recoup its investment? No, because since businesses cannot survive at a loss, companies are unable to recoup their investments in fixed costs. ii. If companies that invest in xed costs cannot survive, can we have a productive economy? No, because in the long run, you will always be at a loss while operating at a fixed cost