Delta Engineering is a firm operating in a monopolistically competitive market. It is currently earning positive economic profits.

1. Draw a fully labeled graph of Delta Engineering. Label the profit-maximizing quantity (Qm) and the profit-maximizing price (Pm).
2. Shade the area of deadweight loss.
3. What should happen to Delta Engineering's profits in the long run? Explain.
4. Does Delta Engineering achieve allocative efficiency in the long run? Explain.