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

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Quizplus · Accepted Answer

While both monopolistically competitive and perfectly competitive industries can achieve efficiency in the long run, this statement is not entirely true. Monopolistically competitive firms have some degree of market power and can charge slightly higher prices than perfectly competitive firms, which can lead to a slightly lower level of efficiency. However, both types of industries can still achieve productive and allocative efficiency in the long run.

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