True or False. a. Comparing monopoly to monopolistic competition, we can tell that the firm will earn economic profit in both cases in the long run. b. When oligopolists collude and form a cartel, the outcome in the market is similar to that generated by a perfectly competitive market. c. A profit-maximizing monopolist's marginal cost is its supply curve.
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Step 1: In a monopolistic competition, firms can earn economic profit in the short run but not in the long run due to entry and exit of firms. Show more…
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