2. Entry or exit in the long run PietreDure Bikes is a company that manufactures bikes in a monopolistically competitive market. Assume that PietreDure is operating in the short run. The following graph shows PietreDure's annual demand curve (Demand), marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the grey point (star symbol) on the graph to indicate the profit-maximizing price and quantity for the company. Then determine if the company is experiencing a profit or a loss. If they are experiencing a profit, use the green rectangle (triangle symbols) to shade the area representing the company's profit. However, If they are suffering from a loss, use the purple rectangle (olamond symbols) to shade the area representing the company's loss. Note: Select and drag the rectangles from the palette to the graph. To resize, select one of the points on the rectangle and move to the desired position. 109 Mon Comp Outcome 70 Profit ATC PRICE (Dollar por bike) Lots Damand MR 10 30 45 50 60 108 QUANTITY (Thousands of bikes)Now consider the long run, in which bike manufacturers are free to enter and exit the market. Show the possible effect of this free entry and exit by shifting the demand curve for a typical individual producer of bikes on the following graph. Note: Select and drag the curve to the desired position. The curve will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther. O Demand PRICE (Dollars per bike) Demand QUANTITY (Bikes)