Question

In the long run, the rate of return will tend toward normal.

Economic profits will tend toward zero

Theoretically reutlts are (similar, quite larger, quite Smaller) To/than a perfect competitor and (similar efficiency, greater efficiency, less efficiency) That a monopoly in terms of social benefits and prices/costs

Answer 1

Theoretically results are similar to a perfect competitor and greater efficiency than a monopoly in terms of social benefits and prices/costs. In the long run the perfectly competitive firm and a monopolistically competitive firm earn zero economic profits. The perfectly competitive firm has no control over price unlike monopolistically competitive firm which has some control over price. Both the competitor are more efficient than the monopoly which has market power and full cointrol over price, earning economic profits in long as well as short run.