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.