Is citrus scooters earning a positive profit? Are there an : equal number, fewer or more sellers in the industry relative to the long run equilibrium amount? Which way would the demand curve shift if there is free entry and exit for a typical individual producer of scooters.

5 . How short-run profit or losses induce entry or exit Citrus Scooters is a company that manufactures electric scooters in a monopolistically competitive market. The following graph shows the demand curve, marginal revenue curve (MR), marginal cost curve (MC), and average total cost curve (ATC) for Citrus. Place the black point (plus symbol) on the graph to indicate the short-run profit-maximizing price and quantity for this monopolistically competitive company. Then, use the green rectangle (triangle symbols) to shade the area representing the company's profit or loss. 500 450 Monopolistically Competitive Outcome 400 350 Profit or Loss 300 A 250 PRICE (Dollars per scooter) 200 150 ATC 100 50 MR Demand 500 50 100 150 200 250 300 350 400 450 QUANTITY (Scooters)