1. In a city like New York, the market for standup comedians is likely to be monopolistically competitive. Explain why this is so.
If the market is monopolistically competitive, then what can be said about prices, output, and profits in this market?
2. Fill in the blanks with "=," "<" or="" "="">" as appropriate to describe the long-run outcome in a monopolistically competitive market.
a. MC AC
b. P AC
c. MR MC
d. P MC