4. Is monopolistic competition efficient? Suppose that a company operates in the monopolistically competitive market for electric razors. The following graph shows the demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve for the firm. Place a black point (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the firm faces and the quantity associated with that cost.100 90 Mon Comp Outcome 80 70 60 Min Unit Cost 50 PRICE (Dollars per razor) ATC 40 30 20 MC 10 MR Demand 0 10 20 30 40 50 60 70 80 90 100 QUANTITY (Thousands of razors)Because this market is monopolistically competitive. you can tell that it is in longrun equilibrium by the fact that V at the optimal quantity;r for each firm. Furtherr a monopolisticallyir competitive firm's average total cost in longrun equilibrium is V the minimum average total cost. True or False: This indicates that there is excess capacity in the market for razors. 0 True 0 False Monopolisticalh'ir competitive markets may be sociallyr inefficient clue to the presence of too manyir or too few firms. The presence of the v externalit);r implies that there is too little entry of new firms in the market. Because this market is monopolistically competitive, you can tell that it is in long-run equilibrium by the fact that V at the optimal quantity for each firm. Further, a monopolistically competitive firm's average total cost in longrun equilibrium is average total cost. True or False: This indicates that there is excess capacity in the market for razors. 0 True 0 False Because this market is monopolistically competitive, you can tell that it is in longrun equilibrium by the fact that V at the optimal quantity;r for each firm. Further, a mcmopolisticalhllr competitive firm's average total cost in longrun equilibrium is V the minimum average total cost. True or False: This indicates that there is excess capacity in the market for razors. equal to greater than 0 True less than 0 False True or False: This indicates that there is excess capacity in the market for razors. O Tme product variety business-stealing petitive markets may be socially inefficient clue to the presence of too many or too few firms. The presence of the v externality implies that there is too little entry of new firms in the market