(Solved): QUESTION 26 Which of the following is FALSE? Long-run equilibrium in monopolistic competition resul ...

QUESTION 26 Which of the following is FALSE? Long-run equilibrium in monopolistic competition results in zero economic profits. A monopolistically competitive firms' demand curve will be more elastic than the demand facing a pure monopolist. Monopolistic competition results in a greater variety of products than perfect competition. Economists extensively use game theory to model the behavior of monopolistically competitive firms. QUESTION 27 A basic characteristic of the firms in an oligopoly market structure is that they are: large (relative to the total market) and interdependent. Olarge (relative to the total market) and independent. small (relative to the total market) and interdependent. small (relative to the total market) and independent.