Kai Concrete is a firm operating in a monopolistically competitive market. It is currently earning negative economic profits.

1. Draw a fully labeled graph of Kai Concrete. Label the profit-maximizing quantity (Qm) and the profit-maximizing price (Pm).
2. Shade the area of economic losses.
3. What would happen to Kai Concrete's losses in the long run, assuming that it stays in the market? Explain.
4. Does Kai Concrete achieve productive efficiency in the long run? Explain.