4) Use the following figure, which shows the situation facing Flight Inc., a producer of running shoes. This company is operating in Monopolistic Competition. a. What quantity does Flight produce, what price does it charge, and what is its economic profit? b. In the long-run, how does Flight change its price and the quantity it produces? What happens to the market output of running shoes? c. Does Flight have excess capacity in the long-run? If it has excess capacity in the long-run, why doesn't it decrease its plant size?

4) Use the following figure, which shows the situation facing Flight Inc., a producer of running operating in Monopolistic Competition. MC 100 ATC Price and cost (dollars per pair) 80 60 40 20 D MR O 50 100 150 200 250 Quantity [pairs of running shoes per week! a. What quantity does Flight produce, what price does it charge, and what is its economic profi