QUESTION 3. 1. In a perfectly competitive market structure, A. There will be no economic profits in either the short run or the long run. B. Economic profits may persist in the long run if consumer demand is strong and stable. C. There may be economic profits in the short run, but not in the long run. D. There may be economic profits in the long run, but not in the short run. 2. You own the only hardware and grocery store combination within miles of the nearest competitor. Your store will find it profitable to stay in business as long as MC ceteris paribus. A. is less than MR B. equals MR C. is greater than MR D. none of the above. 3. TRUE or FALSE In seeking the profit maximizing output, the monopolist under allocates resources to its production, thereby producing less output than a perfectly competitive firm. 4. In cases of antitrust violations, the key issue is often: A. environmental damage or negative externalities B. whether a patent is valid C. the amount of advertising to increase the customer base D. identification of the market