3. How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss.500 450 Monopolistically Competitive Outcome 400 350 ATC Profit or Loss 300 250 PRICE (Dollars per scooter) 200 150 100 MC 50 MR Demand 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Scooters)Given the prot-maximizing choice of output and price, Citrus Scooters is earning V profit, which means there are V sellers in the industry relative to the longrun equilibrium amount. Now consider the long run in which scooter manufacturers are free to enter and exit the market. Show.r the possibie effect of this free entry and exit by shifting the demand curve for a typical individuai producer of scooters on the following graph. O Demand PRICE (Dollars per scooter) Demand QUANTITY (Scooters)which of the following statements are true for both monopolistically competitive markets and monopoly markets? Check all that apply. C Price is above marginal cost. C Firms can earn positive prot in the long run. F. Firms are not price takers. C Firms earn zero profit in the long run