Q4 - Monopolistic Competition Suppose there are n monopolistic firms. Suppose that each firm produces a good that is not identical but is a perfect substitute for the others (e.g., socks or pencils). Suppose fixed costs for each firm are FC=1600 and each firm has a marginal cost of 160 to produce the good. Firm i produces y, units of the good. The firms face market inverse demand of p = 960 - 4y where y = Zien yr- a) Suppose y, is the output of firm / and X is the output of all firms other than i. What is the firm's marginal revenue? b) What is the output of firm & in equilibrium in terms of X? c) What is the total output y of all firms as a function of n? d) What is the market price in terms of n? e) How many firms will there be in equilibrium? f) What is the consumer surplus in this market at equilibrium? g) What is the deadweight loss in this market at equilibrium