Problem
1. Consider this statement: "Because price equals long-run average cost and profits are zero, a monopolistically competitive firm is efficient." Do you agree or disagree? Explain
2. Draw a graph that shows how advertising affects a firm's ATC curve. Explain how advertising can lead to lower prices in a monopolistically competitive industry.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.