5 . How short-run profit or losses induce entry or exit Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's dem curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC).Place the black paint (plus symbol) on the graph to indicate the short-run prot-maximizing price and quantity for this monopolistically competit. company. Then, use the green rectangle ( triangle symbols) to shade the area representing the company's prot or loss. 500 - + 450 Monopolistically Competitive Outcome H Prot or L055 400 350 300 250 200 PRICE (Dollars per bike) 150 100 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) Given the profit-maximizing choice of output and price, the shop is making Y profit, which means there are 7 shops in the industry relative to the longrun equilibrium. 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 O Demand PRICE (Dollars per bike) Demand QUANTITY (Bikes)Which of the following statements are true about both monopolistic competition and monopolies? Check all that apply. C] Firms can earn positive prot in the long run. C] Price equals average total cost in the long run. C] Price is above marginal cost. C] Firms are not price takers