Sparkle is one of the many firms in the monopolistically competitive market for toothpaste, which is in long-run equilibrium.

Video's that may help: https://www.youtube.com/watch?v=8a3gXThQeK0 and https://www.youtube.com/watch?v=T3F1Vt3IyNc&t=278s

A.Draw a diagram showing Sparkle's demand curve, marginal-revenue curve, average- total-cost curve, and marginal-cost curve. Label Sparkle's profit-maximizing output and price.

B.What is Sparkle's profit? Explain and label.

C.On your diagram, show the consumer surplus derived from the purchase of Sparkle toothpaste. Also show the deadweight loss relative to the efficient level of output.

D.If the government forced Sparkle to produce the efficient level of output, what would happen to the firm? What would happen to Sparkle's customers?