Use the economic theories discussed, to determine whether the statement in Italics in the following question...

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Use the economic theories discussed, to determine whether the statement in Italics in the following question...

Use the economic theories discussed, to determine whether the statement in Italics in the following question is True, False or Uncertain. Please explain using both words and graph(s) and make it concise.

From an economist’s point of view, in the long run, a firm operating in a perfectly competitive the industry is more efficient than a firm operating in monopolistic competition because there are more firms in the perfectly competitive industry.

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Answer 1

Answer #1

True, because in the long run due to large number of firms the quantity produced will under perfect competition are higher and prices are lower as compared to monopolistic competition.

In the long run the firms under perfect competition charge a price equal to minimum AC while that under monopolistic competition firms produces at brek even.

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Answer 2

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Use the economic theories discussed, to determine whether the statement in Italics in the following question...

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