Monopolistic competition (4 points) In the graph below, show the change in the MC, ATC, q\

Monopolistic competition (4 points) In the graph below, show the change in the MC, ATC, q* , and P* if the firm faces a lower variable cost of operation. ATC MR Price Control (6 points) Draw a market supply and demand in the space, appropriately labeling your axes and curves. Indicate where a binding price ceiling (Pc) would be in this graph. Indicate clearly the shortage or surplus that would exist if this price ceiling is imposed in this market AND whether it is a shortage or a surplus