a. This is the condition that applies to both the firms. This is due the law of demand. It states that with an increase in price there would be a decrease in quantity demanded and vice versa. Hence, it describes both the monopoly firm and the monopolistic competitive firm.
b. Marginal revenue is less than the price is both the markets of a firm. This is because in both the markets, the firm has a potential to earn profits. Hence, the products are priced above the point of profit maximization (MR=MC). Hence, marginal revenue is less than the price in both monopoly firma and monopolistic firm.
c. Monopoly firm does not allow other firms to enter into the market with similar product. It is the characteristic of Monopolistic competition to allow free entry of firms. Hence, it is monopolistic competition.
d. This is the characteristic of Monopoly firm. As the firm is enjoying the privilege of profits, more firms tend to enter the market providing the same type of product.
e. The profit maximizing point in either of the markets is at a point where MR=MC. This is also a point of firms break even where it does not earn profit nor incurs a loss. In this case, the firm identifies a profit maximizing scope in the market. Hence, this condition applies to both monopolistic firm and monopoly.
f. It is neither monopoly firm not the monopolistic firm. This is because both the firms tend to draw profit out of the market as they have the privilege of no competition. It happens in Perfect competition where the firms produce goods at a least cost to provide socially efficient quantity at lesser price.
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