. Sparkle is one firm of many in the market for toothpaste, which is in long-run equilibrium. (The toothpaste market is onsidered to be monopolisti ally ompetitive).

(a) Draw a diagram showing Sparkle's demand urve, marginal-revenue urve, average-total- ost urve, and marginal- ost urve. Label Sparkle's profitt-maximizing output and pri e.

(b) What is Sparkle's profit? Explain

(c ) On your diagram, show the onsumer surplus derived from the pur hase of Sparkle toothpaste. Also show the deadweight loss relative to the efficient level of output

(d) If the government for ed Sparkle to produce the efficient level of output, what would happen to the firrm? What would happen to Sparkle's ustomers?