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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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