Q9. The following diagram shows the structure of cost and demand facing a monopolistically competitive firm in the short run.

a.Identify the following on the graph and calculate each one.

i.Profit-maximizing output level

ii.Profit-maximizing price

iii.Total revenue

iv.Total cost

v.Total profit or loss

b.What is likely to happen in this industry in the long run?

Q9. The following diagram shows the structure of cost and demand facing a monopolistically competitive firm in the short run a. Identify the following on the graph and calculate each one. 1. Profit-maximizing output level 11. Profit-maximizing price Total revenue 1V. Total cost V. Total profit or loss b. What is likely to happen in this industry in the long run? Page 7 of 8 ATC 20 MC 10 15 20 MR Units of output Estimated Time: 15 Minutes 02 Marks