For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. 1. Charges a price that is the same as marginal cost2. Sells a product differentiated from those of its competitors3. Produces at the efficient scale of the firm4. Equates marginal revenue and marginal cost5. Operates with excess capacity6. Earns economic profit in the long run

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Asked Nov 26, 2019
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For each of the following characteristics, indicate whether it describes a perfectly competitive firm, a monopolistically competitive firm, both, or neither. 

1. Charges a price that is the same as marginal cost

2. Sells a product differentiated from those of its competitors

3. Produces at the efficient scale of the firm

4. Equates marginal revenue and marginal cost

5. Operates with excess capacity

6. Earns economic profit in the long run

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