"In the long run, there is no difference between monopolistic competition and perfect competition." True, false, or ambiguous? Discuss this statement with respect to the following:
a. The price charged to consumers - true
b. The average total cost of production - false
c. The efficiency of the market outcome - ambiguous
d. The typical firm's profit in the long run hide problem- ture
Distinctions between perfect and monopolistic competition in terms of efficiency and social cost.