a. (5 points) On the graph below, draw what happens to the demand curve for amonopolistically competitive firm as it transitions into the long run. Explain.

b. (5 points) What is collusion between oligopolists, and why is it beneficial for firms? Why might a country make it illegal?

c. (3 points) Why is it difficult for firms to collude even when collusion is not illegal?

d. (2 points) Is the deadweight loss larger or smaller under a competitive oligopoly than under collusion? Explain briefly.