E. Monopolistic Competition (12 points) 100 T Price 90 + 80 70- MC AIC 58 60 50 36 40 D 30 20 10 -MR + + 12 1 20124 28 32 Quantity 1. What are the profit maximizing levels of output and price for the above firm? 2. When this firm profit maximizes, what (compute) is the firm's profit or loss? Is this firm in a short run or long run equilibrium? Why? 3. Is this market more efficient or less efficient compared to perfect competition? Give two reasons for your answer. 4. How much is the excess capacity of this firm? If this were a perfectly competitive market, how much output will be produced by the firm