age.com/staticb/ui/evo/index.html?elSBN-9781337111560&id=1832589025&snapshotld=35411328 CENGAGE | MINDTAP Homework (Ch 09) 3. Monopolistic competition in the short run and the long run Fantastique Bikes is a company that manufactures bikes in a monopolistically competitive market. The following graph shows Fantastique's demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC). Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. 500 450 Monopolistically Competitive Outcome 400 350 Profit or Loss 300 250 PRICE, COSTS, AND REVENUE (Dollars per bike) 200 150 100 MR Demand 50 100 150 200 250 300 350 400 450 500 QUANTITY (Bikes) ven the profit-maximizing choice of output and price, the shop is earning negative profit, which means there are more shops in the dustry than in long-run equilibrium