Firm A is a perfectly competitive firm. Firm B is a monopolistically competitive firm. Both firms are currently maximizing their respective profits. Which of the following statements is correct?

Question

Answer

Both Firm A and Firm B would be eager to make an additional sale.

Answer

Firm A would be eager to make an additional sale, but Firm B would not care whether it made an additional sale or not.

Answer

Neither Firm A nor Firm B would care whether it made an additional sale or not.

Answer

Firm B would be eager to make an additional sale, but Firm A would not care whether it made an additional sale or not.

Crowdly

Firm A is a perfectly competitive firm. Firm B is a monopolistically competitive...

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