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9. How does the long run equilibrium of a monopolistically competitive industry differ from that of a perfectly competitive industry? In long-run equilibrium in a monopolistically competitive firm will earn economic profits. In long-run equilibrium in a monopolistically competitive firm price will be higher than the average cost of production. Inlong-run equilibrium in a monopolistically competitive firm does not use fully the plant size it built. P Inlong-run equilibrium in a monopolistically competitive firm is allocatively efficient while the perfectly competitive firm is not. 10. A monopolistically competitive firm that is earning profits will, in the long run, experience __. A new rivals entering the market B demand decreases demand for the firm's product becomes more elastic P all of the above 1. A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until __. A the original firm is driven into bankruptcy B the firm's demand curve is perfectly elastic the firm's demand curve is tangent to its average total cost curve P the firm exits the market 12. Which of the following is correct for a firm with a downsloping demand curve for its product? Price, average revenue, and marginal revenue are all equal. Price, average revenue, and marginal revenue are all different. Price and average revenue are equal but marginal revenue is less. P Price and average revenue are equal but marginal revenue is greater