How is a monopolistically competitive firm similar to a monopoly ...

[karateprodigy]

How is a monopolistically competitive firm similar to a monopoly firm?
 
  A) Both produce where marginal revenue equals marginal cost.
  B) Both will observe entry into the industry if economic profit is positive.
  C) Both produce a unique good.
  D) Both produce where price equals marginal cost.

Question 2

In the scenario above, if both firms cheat on the agreement, producing more than the agreed amount, then
 
  A) each firm makes zero economic profit.
  B) the outcome is identical to a monopoly.
  C) the industry's economic profit is the maximum profit that can be made by the duopoly.
  D) each firm makes a greater economic profit than it would make if it complied with the agreement.

[coyin]

Answer to Question 1

A

Answer to Question 2

A

[karateprodigy]

Excellent

[sarah_brady415]

TYSM