Question 7: a) Using the Demand, MC, MR. and ATC curves as well as the appropriate labels, show the firm's optimal choice of output and price in monopolistic competition and illustrate a situation in which the firm is earning positive economic profits in the short-run (4 points). b) On another diagram, show the long-run equilibrium for the individual firm in monopolistic competition using only the Demand, MC, MR. and ATC curves as well as the appropriate labels. (4 points)