Exercise 4. Dr. Smith is a cardiologist who produces medical care in a monopolistically competitive market. Assume the following. . The weekly demand for Dr. Smith's services is given by Q = 100 -P (hint: for graphing purposes with P (i.e. price) on the vertical axis and quantity (i.e. patients) on the horizontal axis, the inverse demand curve is P = 100-Q). . Marginal Revenue is twice as steep as demand, so MR = 100 -2Q. . Dr. Smith's total cost of producing medical care is given by TC = 100+20Q+Q2 and marginal cost of producing medical care is given by MC = 20+ 2Q. 1. To maximize profit, how many patients will Dr. Smith see each week? [10] 2. To maximize profit, what price will Dr. Smith charge per office visit? [5] 3. What is Dr. Smith's short run weekly profit? [10] 4. Show Dr. Smith's short run profit on a graph (draw demand, MR, MC, ATC, TR, TC, and Profit). [10] 5. What will happen to Dr. Smith's demand curve in the long run? Will Dr. Smith be able to make the same weekly profits in the long run? Why or why not. [5]