Read the "McDonald's" article below and answer the following questions

A.Draw and label a demand curve for a monopolistically competitive firm.

oBriefly explain why:

(a) the demand curve is not perfectly elastic, and

(b) why it is more elastic than the demand curve for a monopoly firm would be.

B.Refer to the graph drawn to answer the previous question. Draw the firm's marginal revenue and marginal cost curve in your graph.

oBriefly explain why:

o(a) the marginal revenue curve lies below the demand curve, and

o(b) why the profit-maximizing rate of output is located where the firm's marginal revenue curve intersects its marginal cost curve.

C.The article stated: "...McDonald's... attributed the third-quarter sales growth to the partnership with Mr. Scott and a reduction in average wait times at drive-throughs... McDonald's said a simpler menu during the pandemic and the closure of most dining rooms increased labor efficiency..."

Briefly describe the impact of the following on either the demand curve or the marginal and average total cost curves for McDonald's meals:

(a) the firm's partnership with Travis Scott;

(b) a reduction in average weight times at drive-through windows;

(c) increased labor efficiency.

D. Monopolistically competitive firms can earn economic profit in the short run, but no economic profit in the long run. Explain why.

E.From the article: "'I like the dark tones of his music and the energy he brings to the stage,'..., a 20-year-old in Wilkes-Barre, Pa., who ordered the meal last month, said of Mr. Scott. 'That was enough to bring me into the door. But the meal itself? Eh.'" Economists generally assume that consumers are rational. Is it rational for consumers to buy products solely because they have been endorsed by celebrities?