It is the case in both perfectly competitive and monopolistically competitive markets that other firms will enter when firms are making positive economic profits, until price eventually equals ATC and economic profits are zero. Despite these similarities, in a perfectly competitive market total surplus is maximized, while in a monopolistically competitive market surplus is not maximized. Which of the following statements explains this difference? OIn monopolistically competitive markets, firms face horizontal demand curves while in perfectly competitive markets firms face downward-sloping ones. In perfectly competitive markets, firms operate where MR is equal to MC, which is where ATC is minimized. OIn monopolistically competitive markets, firms operate of the ATC curve which means that MC is higher than ATC. on the decreasing section OIn monopolistically competitive markets, firms operate where ATC is equal to MC which is where ATC is minimized Suppose outcome, indicate whether consumer surplus, producer surplus, and total surplus increase, decrease, or remain the same under the following scenarios. a new product is developed and is supplied by a monopolist with a patent. Compared with the monopoly Producer surplus Total surplus Scenario Consumer surplus a. Another producer creates a similar product and colludes with the original producer (Click to select) (Click to select) # (Click to select) Remains the same b. Another producer creates a similar Decreases (Click to select) (Click to select) product and competes with the original producer. Increases (Click to select) ) c. The patent expires (Click to select) (Click to select)