In the model of monopolistic competition,compared to a firm with a higher marginal cost,a firm with a lower marginal cost will set a ________ price,produce ________ output,and earn ________ profits.

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In monopolistic competition, firms have some degree of market power and can raise their price above marginal cost. However, lower marginal costs give a firm a competitive advantage, allowing it to produce more output at a lower cost. As a result, a firm with lower marginal costs will set a lower price, produce more output, and earn higher profits than a firm with higher marginal costs. This is consistent with the basic theory of supply and demand, where lower costs lead to lower prices and higher quantities supplied.

In the Model of Monopolistic Competition,compared to a Firm with a Higher