17. Problems and Applications Q10 The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butter-producing firm. It also shows the demand curve and marginal-revenue (MR) curve faced by a firm operating in a monopolistically competitive environment. On the following graph, use the black point (plus symbol) to show the profit-maximizing output and price for a typical firm operating in a monopolistically competitive environment.Demand Profit Max Under MC Price, Cost, Revenue Perfect Comp. Outcome ATC MC MR QuantityOne day, consumer advocate Skippy Jif discovers that all brands of peanut butter in Nutville are identical. Thereafter, the market becomes perfectly competitive and again reaches its long-run equilibrium. On the previous graph, use the grey point (star symbol) to show the market price in this case and the quantity produced by each firm. Complete the following table by indicating whether each of the following variables increases, decreases, or stays the same for a typical firm in this market given the transition from monopolistic competition to perfect competition. Variable Increases Decreases Stays the Same Price O O O Quantity O O O Average total cost O O O Marginal cost O Profit O o O o o