Question 1:  This question requires complete understanding of interactions between production and profit maximization.  Be careful with the IF-THEN statement.   If...

Question 1:  This question requires complete understanding of interactions between production and profit maximization.  Be careful with the IF-THEN statement.

If a competitive firm minimizes its cost of production subject to output, it then maximizes economic profit. True or false and explain in detail.

Question 2:    In an oligopolistic market, firms pay close attention to the strategies of their rivals.  In monopolistic competition, with a large number of sellers, it is assumed that there is not this kind of rivalry, or interdependence.  Why is there probably some rivalry in many monopolistically competitive markets?