Please answer in 15 minutes

Question 1 (12 marks) Consider two firms (A and B) which are about the same size, but firm A is in a perfectly competitive industry and firm B is in monopolistically competitive industry. In your own words (using complete sentences), and without using diagrams, answer the following questions. a) What is the main difference between the two firms that causes them to be classified as operating in different industries? b) Contrast how the two firms set their selling price. c) Suppose both firms are in a long run equilibrium. Which firm would you expect to be more profitable? Why? d) Suppose both firms are in a long run equilibrium. Which firm would you expect to be more productively efficient? Why