1. Under monopolistic competition, which of the following is
true:
A) In the short run, the firm behaves as a firm in perfect
competition.
B) In the long run equilibrium, firms will make positive
profits.
C) If there are economic profits, in the long run new firms
enter leading to a decrease in demand for the existing firm.
D) All of the above are true.
E) None of the above are true
2. In the market equilibrium, a single-price monopolist...