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The given statements refer to the pricing, economic efficiency, and resource allocation for monopolistically competitive firms. label the statements as being either true or false. each term is used more than once. statement 1: monopolistically competitive firms will produce where price=marginal revenue=marginal cost in the short run. statement 2: monopolistically competitive firms are inefficient in their use of resources since they produce at the point where marginal revenue=marginal cost, which means that price> marginal cost in the short run.
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