1. Draw side-by-side graphs of a monopolistically competitive market and a firm operating in that market earning short-run losses.
2. Draw a separate side by side graph to show how the market graph will adjust in the long run due to the short-run losses.
3. Draw another side by side graph to show what will happen to demand at the representative firm and the impact this will have on the economic profit earned by the firm.

THE GRAPHS ALL MUST INCLUDE THESE COMPONENTS IN EACH ONE.

6 Graph and Label Market (Price Axis, Quantity Axis, D, $1, $2, Qmc, Q2, Pmc *connect the two graphs, P2 *connect the two graphs) 6 Graph and Label Firm (Price Axis, Quantity Axis, MC, MR, D, ATC Curve, AVC, Qmc, Pmc, ATC, Loss, MR2, D2, P2, Q2)