Statement 1: In a perfectly competitive market, firms produce at the point where marginal cost equals marginal revenue to maximize profit.
Statement 2: In monopolistic competition, firms do not have any degree of pricing power due to the presence of close substitutes.
1
Both statements are true
2
Both statements are false
3
Statement 1 is true, Statement 2 is false
4
Statement 1 is false, Statement 2 is true