4. For each of the following characteristics, say whether it describe.pdf

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A monopolistically competitive firm sells a product differentiated from its competitors. Both monopolistically competitive and perfectly competitive firms have marginal revenue less than price and produce at the minimum of average-total-cost in the long-run. Only a perfectly competitive firm equates marginal revenue and marginal cost and charges a price equal to marginal cost.

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4. For each of the following characteristics, say whether it describes a perfectly competitive
firm, a monopolistically competitive firm, both, or neither. a. Sells a product differentiated from
that of its competitors b. Has marginal revenue less than price c. Earns economic profit in the
long-run d. Produces at the minimum of average-total-cost in the long-run c. Equates marginal
revenue and marginal cost f. Charges a price above marginal cost

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