In the long run, there is no difference between monopolistic competition and perfect competition. Discuss whether this

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“In the long run, there is no difference between monopolistic competition and perfect competition.” Discuss whether this statement is true, false, or ambiguous with respect to the following criteria.

a. The price charged to consumers

b. The average total cost of production

c. The efficiency of the market outcome

d. The typical firm’s profit in the long run

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Economics

ISBN: 9781319181949

5th Edition

Authors: Paul Krugman, Robin Wells

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