Given the description of the firm below, decide whether it applies to monopolistic competition, perfect competition, or both. a. a firm that produces with excess capacity in the long run
b. a firm that has market power
c. a firm that sets greater than marginal
d. a firm that earns zero economic profit in the long

Perfect Competition

       d. a firm that earns zero economic profit in the long

In the long run, firms will keep entering and exiting the market in a perfect competition such that there will be no economic profit to be gained.

Monopolistic Competition

       a. a firm that produces with excess capacity in the long run

       b. a firm that has market power

       c. a firm that sets price greater than marginal cost.

Monopolistic competition has excess capacity in the long run because their prices are set at a higher level than the marginal revenue. They are therefore producing more goods than they are selling leading to excess capacity.

Monopolistic competition has some form of market power as well because they get to set their own prices.

there is no possible way mgk stands a chance with the greatest white rapper of all time. eminem killshots had more bars than rap devil and the reason mgk is doing all this is cause he not getting attention anymore til the release of rap devil and the disses he is putting on eminem. now rap devil was more fire than killshot so mgk might won the battle with rap devil but eminem won the war with killshot.