In a monopolistically competitive industry, how does price compare with marginal cost?

	a.	Price is a fraction of marginal cost since each firm is a price setter.
	b.	Price is above marginal cost since each firm is a price setter.
	c.	Price is equal to marginal cost since each firm is a price taker.
	d.	Price is below marginal cost since each firm is a price taker.

Because a monopolistically competitive firm has some market power, in the long run what does the price of its good exceed?

	a.	its average total cost
	b.	its marginal cost
	c.	its average revenue
	d.	its profit per unit

Entry and exit drive each firm in a monopolistically competitive market to a point of tangency between which of its curves?

	a.	demand curve and its total-cost curve
	b.	marginal-revenue curve and its average-total-cost curve
	c.	marginal-revenue curve and its total-cost curve
	d.	demand curve and its average-total-cost curve