1) For question (1), answertwoof the options below:

a) How will managers of a monopolistically competitive firm decide on the optimal level of production? Elucidate.

b) Describe market forces that come into play in theshort runif a monopolistically competitive firmis making apositiveeconomic profit. How would this compare to thetypical long-run equilibrium?Explain.

c)True, False Uncertain and Explain: "Happy hour" pricing by bars and restaurants (i.e., lower prices atthe close of the business day) is not a logical outcome. The increase in demand for food and beveragesaround 5:00 p.m. should actually result inhigherprices.