Question 12 Again, consider the long-run equilibrium in a monopolistically competitive market. Assume all firms have the same cost structure C(q) = VC(q) + F, where F denote the fixed costs, and that all firms face the same demand P(Q, N) = a/N - bQ, where N is the number of firms in the market and a and b are constants. Which of the following alternatives is correct? (a) As F increases, the number of firms in the long run equilibrium increases (b) As F increases, the number of firms in the long run equilibrium decreases (c) As N goes to one, the price and quantity go to those of perfect competition equilibrium (d) As b goes to zero, the price and quantity go to those of monopoly equilibrium