9 . Perfect Competition The market for peanut butter in Nutville is monopolistically competitive and in long-run equilibrium. The following graph shows the marginal-cost (MC) curve and the average-total-cost (ATC) curve for a peanut-butterproducing rm. It also shows the demand curve and marginal-revenue (MR) curve faced by a rm operating in a monopolistically competitive environment. On the following graph, use the black point (plus symbol) to show the profit-maximizing output and price for a typical firm operating in a monopolistically competitive environment. ('2) "I- Prot Max Under MC at Perfect Comp. Outcome Price, Cost, Revenue Quantity One day, consumer advocate Skippy Jif discovers that all brands of peanut butter in Nutville are identical. Thereafter, the market becomes perfectly competitive and again reaches its long-run equilibrium. 0n the previous graph, use the grey point (star symbol) to show the market price in this case and the quantity produced by each rm. Which of the following statements are true for a typical rm in this market given the transition from monopolistic competition to perfect competition? Check all that apply. _ Prot remains unchanged. The price decreases. _ The quantity decreases. Average total cost remains unchanged. _ Marginal cost decreases