Can you show every step taken to get the answer?

Font Paragraph Styles voice Sensitivity 1. (8 points) You are thinking of setting up a coffee shop. The market structure for coffee shops is monopolistic competition. There are three Starbucks shops and two other coffee shops very much like Starbucks in your town already. In order for you to have some degree of market power, you may want to differentiate your coffee shop Thinking about the three different ways in which products can be differentiated, explain how you would decide whether you should copy Starbucks or whether you should sell coffee in a completely different way 2. (14 points) Suppose the table below represents the demand and total cost for a monopolistically competitive firm Note that, for simplicity, this firm has no fixed cost P Q TR MR TC MC 0 0 7 1 6 2 13 5 3 6 4 4 10 3 5 15 a. What is the profit maximizing output level for this firm? What is their profit at that quantity? b. Is this firm efficient? How do you know? c. Is this firm in long-run equilibrium? How do you know? 3. (10 points) Suppose market for dentists is monopolistically competitive. If someone tells you that, because many dentists do not have as many patients as they would like, this market is inefficient. This person states that (1) there should be fewer dentists in the area, and (2) patients should be distributed evenly amongst the remaining dentists by an agency run collectively by all the area dentists That is, the market for dentists should be run more like a perfectly competitive industry where all dentists' services are viewed as being identical and patients are assigned to the first available dentist a. Why would we expect some "excess capacity" in the monopolistically competitive market? b. Would the patients be better off under the new market structure? What would patients lose and what would they gain by switching to such a system? Would dentists be better off