1.1. True or false? Explain your answers.

a. Like a firm in a perfectly competitive industry, a firm in a monopolistically competitive industry is willing to sell a good at any price that equals or exceeds marginal cost.

b. Suppose there is a monopolistically competitive industry in long-run equilibrium that possesses excess capacity. All the firms in the industry would be better off if they merged into a single firm and produced a single product, but whether consumers are made better off by this is ambiguous.

c. Fads and fashions are more likely to arise in monopolistic competition or oligopoly than in monopoly or perfect competition.