A monopolistically competitive industry is illustrated by the figure to the right with the demand (D1 ), marginal MC1 AC1 revenue (MR, ). marginal cost (MC, ), and long-run average cost (AC, ) curves for a representative firm. Suppose firms 40 0D in this industry are initially producing such that they maximize profits. 36.DO- How will this industry adjust to a long-run equilibrium? 32 0D- Show how the industry begins to adjust to a long-run equilibrium by shifting the appropriate curves. 28.00- 1.) Using the line drawing tool, shift the demand and marginal revenue curves, if necessary. Label the new curves 24.00- "D2" and "MR2." Price (dollars per unit) 20.00- 2.) Using the three point curved line drawing tool, shift the marginal cost and average cost curves, if necessary. 16.00- Label the new curves "MC2" and "ACz." 12.00- You don't need to show the firm in a long-run equilibrium. just show how the curve(s) begin to adjust. Also, only draw 8.DO new curves for those that shift 4.00- MR D1 Carefully follow the instructions above, and only draw the required olyects. D.OD 0 3 5 8 10 Quantity