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1. When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit.
True
False
2. The price a profit maximizing monopoly charges is always greater than its marginal cost as well as it MR while it may not be greater than its ATC.
3. As new firms enter a monopolistically competitive market, the demand faced by each competing firm becomes more inelastic.
4. The long-run equilibrium of a monopoly is characterized by its price being equal to its MR but always greater than its ATC.
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