1. Firms in monopolistic competition are only going to make what profit in the long run?
- Normal profit
- Abnormal profit
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2. In monopolistic competition, the demand curve is ?
- Perfectly inelastic
- Relatively elastic
- Perfectly elastic
- Relatively inelastic
3. In monopolistic competition, is being productive efficiency achieved?
- Productive efficiency is not being achieved, since in the short run and long run, the firm is operating on the downward-sloping part of the AC curve
- Productive efficiency is being achieved, since in the short run and long run, the firm is operating at the lowest point of the AC curve
4. Allocative efficiency is being achieved
5. Given the product differentiation, it should be clear that firms in monopolistic competition compete through ?
- Non-price competition
- Price competition
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