Graphing: 5. Draw the graph of a monopolistically competitive firm in long run equilibrium. Label the profit maximizing level of output Qmc and the price the firm will charge Pmc. Next label the allocationy efficient level of output Qa and the corresponding price Pa. Shade in the loss to society on the graph. 6. Draw side by side graphs of a monopolistically competitive market and a firm operating in that market earning short run losses. a. What must be true in order for this firm to be operating while incurring a loss? b. Show how the market graph will adjust in the long run due to the short run losses. c. Show what will happen to demand at the representative firm and the impact this will have on the economic profit earned by the firm. d. How does this long run equilibrium compare to that of a perfectly competitive firm