5. MONOPOLISTIC COMPETITION: Determine whether each of the following statements about monopolistically competitive (MOCO) firms is TRUE or FALSE. Focus your attention on the underlined part. a. A MOCO market features free entry in the short run. True b. A MOCO firm sometimes produces where demand is tangent to average total cost. Try C. A MOCO firm faces a residual demand curve that shifts rightward when other firms enter the market. Fal fe d. A MOCO firm sets MC.MR=0 to maximize profit. True- e. A MOCO firm typically advertises or uses a brand name to differentiate its product. Try A MOCO firm is like an oligopolistic firm in that both face residual demand curves, False A MOCO firm never produces at minimum average total cost in the short run. True Products in a MOCO market are perfect substitutes. False i. MOCO firms tend to produce too many units, resulting in too few product choices (i.e., insufficient product differentiation). False J- A MOCO firm can suffer an economic loss in the short run and can enjoy positive economic profit in the long run. False k. Your choices as the manager of a MOCO firm include input mix, production (output), and spending on advertising. True