6. True / False? Explain. In a monopolistically competitive market, if consumer demand for a good increases, then in the short-run (no entry/exit), profit for a single firm might decrease. Use the figure below (from p. 239 in the textbook) as a guide. Tip: don't use specific number values, just show graphically what happens to profit under a demand shift. 35 30 Marginal cost 25 Total profit 20 (40, $16) 15 Price ($) Average cost 10 Total cost 5 Demand 0 -5 Marginal revenue -10 10 20 30 40 50 60 70 80 90 Quantity