7. The first graph below is for Chic and Sharpe Ltd., a firm in the women's garment industry, which is monopolistically competitive. a. Label the four curves in the first graph. (0.5 mark) Costs and revenues Quantity per period b. What areas in the graph above represent: total cost: total revenue; and economic profit? (2 marks) c. On the second graph below, sketch in the effect of entry by new firm's into this industry and label the new price and quantity traded as P2 and Q2 (2 marks) Price P1 Q1 02 Quantity per period d. Using the average/marginal cost curves in the third graph below, sketch in the firm's new demand and marginal revenue curves that would be consistent with zero economic profits. Label the equilibrium price and quantity traded as P2f and Q2f. (2 marks) e. On the third graph indicate with Qc the capacity output for the firm. (0.5 mark)MC AC Costs and revenues Quantity per period f. What is the amount of excess capacity for this firm? (0.5 mark)