Author Question: Although both perfectly competitive and monopolistically competitive firms earn normal profits in ... (Read 156 times)

CBme · **on:** Jun 30, 2018

Although both perfectly competitive and monopolistically competitive firms earn normal profits in the long run, monopolistically competitive firms will not
a. operate where price equals marginal cost
b. charge a higher price than firms in perfect competition
c. produce a smaller quantity than firms in perfect competition
d. produce where price equals average total cost
e. exit when demand falls below long-run average costs

Question 2

With special-interest legislation,
a. benefits are concentrated but costs are widespread
b. both benefits and costs are concentrated
c. benefits are widespread but costs are concentrated
d. both benefits and costs are widespread
e. there is no predictable relationship between costs and benefits