Econ 301 Lab 9: Monopoiistie Competition and Game Theory Complete all parts of the lab and submit your answers by Saturday at 5pm. Part A: Majestic Manicures in a monopolisticaliy competitive market Majestic Manicures operates in a monopolistically competitive market. Its inverse demand curve is P = 20 0.25Q, where Q is the number of daily manicures and P is the price per manicure. The total cost of providing manicures is TC = Q2 + IOQ + 5. a. b. What is Majestic Manicures' profit-maximizing output level and price\"? What is Majestic Manicures' profit? What will happen to Majestic Manicures' demand curve in the long run? Suppose the demand that Majestic Manicures has decreased due to the entry of firms in the long-run and the new demand curve is P = 15 0.25Q. What are the expected long-run equilibrium price and quantity for manicures? Compare the long-run equilibrium price with the marginal cost. Compare the equilibrium output level with the efcient scale where ATC is minimized