Consider two similar market structure: monopolistic competition and perfect competition. Assume that individual firms each has a typical U-shape LAC curve and the standard short-run cost structure as well.

b. Consider a representative form in a Chamberlinan monopolistically competitive industry with 20 firms. Each firm currently faces a dd curve given by P = 10 - 0.001Q. What will each firm's dd curve be following the entry of 30 new firms? (5 points)