If a freeze destroys oranges before they are harvested, the equilibrium price of an orange ________ and the equilibrium quantity ________

Which of the following statements is correct?

a. Firms with some degree of monopoly power are common, but firms with substantial monopoly power are rare. b. Firms with some degree of monopoly power are rare, as are firms with substantial monopoly power. c. Firms with some degree of monopoly power are common, as are firms with substantial monopoly power. d. Firms with some degree of monopoly power are rare, but firms with substantial monopoly power are common.

In a monopolistically competitive market with Dixit-Stiglitz preferences, equilibrium price falls as the goods in the differentiated product market become more substitutable.

Answer the following statement true (T) or false (F)