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1. For a monopolistically competitive firm in long-run equilibrium:
a. price will equal marginal cost.
b. price will equal average total cost.
c. marginal revenue will exceed marginal cost.
d. economic profits will be some positive amount.
2. In comparing the demand curve of a monopolist with that of a monopolistically competitive firm, we would expect the monopolistic competitor to have a:
a. perfectly elastic demand curve and the monopolist to have a perfectly inelastic demand curve.
b. more elastic demand curve.
c. less elastic demand curve.
d. demand curve whose elasticity coefficient is one at all possible prices.
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