Read each statement and determine if it is true or false.

a. a monopolistic competitor, much like a firm in perfect competition, sells its product at a point where the price is equal to the marginal cost. truefalse
b. advertising can play a role as an indirect signal of product quality to customers. truefalse
c. monopolistically competitive industries are more likely to make use of advertising to create products that catch on in mainstream popularity than industries in perfect competition. truefalse
d. in the long run, monopolistic competitors make a similar amount of profit to monopolists, since, in both cases, the firm's demand curves are downward sloping, and at the profit maximizing point, the marginal cost is equal to the marginal revenue.
e. in the short term, a monopolistic competitor will make a profit if the demand curve is above the average total cost curve at some point.

i. true
ii. false