Indicate whether each of the following underlined statements is true or false, and explain your answer. a. When a monopolist maximizes profits, the price is greater than the marginal cost of producing the output. This means that consumers are willing to pay more for additional units of the product than these additional units cost to produce. Thus, the monopolist should produce and sell additional units of output. (Hint: How should a monopolist set its output to maximize profits?) b. In a monopolistically competitive market, a firm has market power because it produces a differentiated product. This means that the firm earns positive economic profit in the long run. (Hint: A monopolistically competitive market allows for free market entry and exit.)