Question: In the long run, there is no difference between monopolistic competition and perfect competition. Discuss whether this statement is true, false, or ambiguous with respect

"In the long run, there is no difference between monopolistic competition and perfect competition." Discuss whether this statement is true, false, or ambiguous with respect to the following criteria.
a. The price charged to consumers
b. The average total cost of production
c. The efficiency of the market outcome
d. The typical firm's profit in the long run

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a According to this criterion the statement is false The price charged to consumers is higher in monopolistic competition than it is in perfect compet... View full answer

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