3 a. Compared to pure monopoly and pure competition, monopolistically competitive industries O will have economic...

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3 a. Compared to pure monopoly and pure competition, monopolistically competitive industries O will have economic profits, they will remain constant as competitors enter, and there will be productive efficiency. O might have economic profits, they will diminish as competitors enter, and there will be productive inefficiency. ● will have economic profits, they will diminish constant as competitors enter, and there will be productive efficiency. O might have economic profits, they will remain constant as competitors enter, and there will be productive efficiency. b. "In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits." This statement is O true, since P < MC, but the lack of available close substitutes pushes the price of the average firm up until it equals ATC. O false, since P < MC, but the lack of available close substitutes pushes the price of the average firm up until it equals ATC. > true, since P> MC, but the availability of close substitutes pushes the price of the average firm down until it equals ATC. O false, since P> MC, but the availability of close substitutes pushes the price of the average firm down until it equals ATC. 3 a. Compared to pure monopoly and pure competition, monopolistically competitive industries O will have economic profits, they will remain constant as competitors enter, and there will be productive efficiency. O might have economic profits, they will diminish as competitors enter, and there will be productive inefficiency. ● will have economic profits, they will diminish constant as competitors enter, and there will be productive efficiency. O might have economic profits, they will remain constant as competitors enter, and there will be productive efficiency. b. "In the long run, monopolistic competition leads to a monopolistic price but not to monopolistic profits." This statement is O true, since P < MC, but the lack of available close substitutes pushes the price of the average firm up until it equals ATC. O false, since P < MC, but the lack of available close substitutes pushes the price of the average firm up until it equals ATC. > true, since P> MC, but the availability of close substitutes pushes the price of the average firm down until it equals ATC. O false, since P> MC, but the availability of close substitutes pushes the price of the average firm down until it equals ATC.

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1 The correct answer is b might have economic profits they will diminish as competitors enter and th... View the full answer