Paul the Pizza Man Used a New Method to Streamline

question 40

Multiple Choice

Paul the Pizza Man used a new method to streamline pizza assembly that allowed him to make more pizzas and thus make greater revenue.Paul began to earn positive economic profits.In the long run,Paul will

• A)continue to earn economic profits
• B)earn zero economic profits because other pizza places will begin to use his system
• C)continue to earn economic profits because Paul will get a patent on his new method
• D)earn negative economic profits because innovators always loose money
• E)earn zero economic profits because the government does not allow monopolistically competitive firms to earn economic profits

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