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(a) Long-Run Equilibrium (b) Long-Run Eeuiliorium in in Perfect Competition Monopolistic Competition Price, E Price, 3 cost. E cost. E marginal MC ATC marginal E MC ATC revenue E revenue E i ; l l E PM E- ' Pg 3 Matt E D : J'Hf't' = PC E 7 0;; Quantity 0,1,, Quantity 28. (Figure 67-11: Comparing Long-Run Equilibriums) In the gure, which of the following statements is false? 3. The rm in panel (a) produces where price equals marginal cost, and thus it maximizes prot and breaks even. b. The rm in panel (b) produces where price equals marginal cost, and thus it maximizes prot and breaks even. 0. The rm in panel (b) produces where price equals average cost, and thus it maximizes prot and breaks even. d. The rm in panel (a) produces Where price equals average cost, and thus it maximizes prot and breaks even. e. The rms in both panels produce where marginal revenue equals marginal cost and thus it maximizes prot. 29. Monopolistic competition within an industry will result in because they produce overutilization of plants; the minimum-cost output less advertising than in perfect competition; the minimum-cost output lower prices than in perfect competition; more than the minimum-cost output chronic excess capacity; less than the minimum-cost output chronic excess capacity; less than the output where marginal cost is minimized EDP-PST!\