3. Ronald McDonald owns a local McDonald's restaurant (many franchises, such as McDonald's, are owned and operated by small businessmen). Ronald is in a monopolistic competitive market, who faces competition from other fast food restaurants such as Burger King and Wendy's. These restaurants sell a similar, but not identical, hamburger to Ronald's. Ronald is pleased that this product differentiation means that some of his customers like his Big Mac better than say, the Whopper, even though the two burgers are similar. a. Draw the demand curve, marginal revenue curve, marginal cost curve, and average total cost curve for Ronald. Show where the prot maximizing price and quantity are. Assume Ronald is currently earning economic prot and show where this prot and deadweight loss is. b. Why does product differentiation give Ronald some market power? c. on no! Cleo McDowell opens his McDowell's restaurant right across the street from Ronald's McDonald's restaurant! Cleo's hamburgers, including the Big Mic, are now perfect substitutes for Ronald's hamburgers. What is this going to do to Ronald's market power? Explain. d. Redraw your graph from part a. to show what this loss of market power does to the demand curve Ronald faces. How does this loss of market power impact his price and prot