Question: 1.7. In the long run, there is no difference between monopolistic competition and perfect competition. True, false, or ambiguous? Discuss this statement with respect to

1.7. “In the long run, there is no difference between monopolistic competition and perfect competition.” True, false, or ambiguous?

Discuss this statement with respect to the following:

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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