Difference in monopolistic competition-perfect competition


Problem: "In the long run, there is no difference between monopolistic competition and perfect competition." True, false, or ambiguous? Discuss this statement with respect to the following:

a. The price charged to consumers - true

b. The average total cost of production - false

c. The efficiency of the market outcome - ambiguous

d. The typical firm's profit in the long run hide problem- ture

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Microeconomics: Difference in monopolistic competition-perfect competition
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