Now that you have studied monopolistic competition, let's see how well you can distinguish a firm in a monopolistically competitive market from a firm in a perfectly competitive market. Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both. You may have to adjust the scroll bar to see the complete list. Items(9 items)(Drag and drop into the appropriate area below)

• a firm that produces at efficient scale in the long run
• a firm that produces an identical product to all of its rivals
• a firm that produces with excess capacity in the long run
• a firm that has market power
• a firm that sets price greater than marginal cost
• a firm that earns zero economic profit in the long run
• a firm that maximizes profits by producing where MR = MC
• a firm that may earn an economic profit or loss in the short run
• a firm that faces a downward-sloping demand curve

Categories

• Perfect competition
• Monopolistic comp.
• Both