Betty's Boats sells boats in a monopolistically competitive market, with the following demand and cost functions, where /V is the number of firms in the market: Demand: P = 100 - 0.5Q Total cost: C' = 25 + 0.5Q2 Questions 2.1 What is the most important difference between monopolistic competition and perfect competition? [1 marks] 2.2. In what way will the demand curve for Betty's Boats shift if the number of firms in the market increases? What will happen to the marginal revenue curve? [2 marks] 2.3. Derive an expression for the profit maximising price and quantity. [2 marks] 2.4. If there are /V = 5 firms in the market, how much profit does Betty's Boats make? Do you expect the number of firms to increase or decrease in the future? Explain why. [3 marks] 2.5. In the long-run, how many firms will there be in this market? Explain your answer. [2 marks]