the long-run, firms in perfect competition and monopolistic competition charge a price that is equal to average total cost (P = ATC). Select one: O a. Therefore, firms in both industries make zero profit in the long run O b. But only firms in perfectly competitive industry generate excess capacity in the long run. O c. Therefore, firms in both industries are efficient in the long run. O d. Therefore, firms in both industries are efficient in the long run.

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Imperfect Competition

Imperfect competition is relatively easier to understand once people have the knowledge of perfect competition. When the five conditions of perfect competition are not made, that market structure is said to be imperfect competition.