Answer
a) both
b) both
c) monopolistically competitive firm
d) monopoly
e) both
f) neither
Work Step by Step
a) In both a monopoly and a monopolistically competitive firm, the demand curves are downward sloping.
b) In both a monopoly and a monopolistically competitive firm, the marginal revenue is less than the price.
c) The monopolistically competitive firm faces additional competition in the long run in the form of additional new firms selling similar items.
d) The monopolistic firm can earn profits in the long run.
e) Marginal revenue and marginal cost are the same for both monopolistic firms and monopolistically competitive firms.
f) Neither a monopolistic firm nor a monopolistically competitive firm produce the socially efficient quantity of output.
