Since a monopolistically competitive firm has the same long-run profits as a perfectly competitive firm,both types of industries are efficient.

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Quizplus · Accepted Answer

While both types of industries can be efficient in the long run, monopolistically competitive firms often have higher prices and lower output compared to perfectly competitive firms, which can lead to allocative and productive inefficiencies. Therefore, monopolistically competitive industries may not always be as efficient as perfectly competitive industries.

Since a Monopolistically Competitive Firm Has the Same Long-Run Profits