A monopolistically competitive industry in the short run is MC ATC illustrated by the figure on the right with the demand (D), 40 marginal revenue (MR), marginal cost (MC), and long-run 36- average cost (ATC) curves for a representative firm. Suppose firms in this industry are initially producing such that they 32- maximize profits. 28- Does this monopolistically competitive firm earn economic profits in the short run? 24-A Price (dollars per unit) 1.) Using the rectangle drawing tool, shade in economic profits. Label your area either 'Profit' or 'Loss' to indicate 16 - whether the firm earns an economic profit or incurs an economic loss. 12 Carefully follow the instructions above and only draw the 8 - required object. MR 3 6 8 9 10 Quantity