Question: 3. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve. b. The monopolist makes economic profits in the

3. The monopolist faces a downward-sloping demand curve while the monopolistic competitor faces an elastic demand curve.

b. The monopolist makes economic profits in the long run while the monopolistic competitor makes zero economic profits in the long run.

c. Both the monopolist and the monopolistic competitor operate at the efficient scale.

d. The monopolist charges a price above marginal cost while the monopolistic competitor charges a price equal to marginal cost.

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