In the long run,a. monopolistically competitive firms earn a higher profit than perfectly competitive firmsbecause monopolistically competitive firms have some monopoly power.b. monopolistically competitive firms produce a higher output than perfectly competitivefirms because competition drives the perfectly competitive firm's output down.c. both monopolistically competitive and perfectly competitive firms produce where P = MC.d. both monopolistically competitive and perfectly competitive firms produce where P =ATC.

In the LR, there are no fixed inputs, and all inputs can be changed to accommodate changes in the…

Answered: In the long run, a monopolistically…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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