Consider the market for hamburgers, which is a market in monopolistic competition. In this market, one of the producers is Barry’s Burgers. The current demandfunction for each firm in the market is P = 40 — Q0. The marginal cost of producing burgers is MC = 10 + Q and the average cost is AC= 10 + (Q/2).

a. Calculate Barry’s Burgers’ short-run optimal price, quantity, and profit.

b. What will happen to the demand curve for Barry’s Burgers next?

c. What is Barry’s Burgers’ profit in the long run?