How would the consumer notice if the government decided to levy a new $2 tax on potato chips? a .there would be no change in price and the consumer would not notice. b. consumers would pay the same price for potato chips, but would notice the $2 tax at the register. c. the price of potato chips would rise. d. the government would tax individuals who bought too many potato chips.

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.