The diagram below shows the demand and average total cost curve for Hayek Co, a monopolistic competitor. Hayek Co. produces sofas in this market. In the diagram, the relationship between the demand curve and average total cost curve shows that Hayek Co. is currenely earning a loss, which will drive some fermacar of the market. Shift the demand curve so it represents a point after the exit of firms has occurred so that Hayek Co. is still in the market but is now earning zero profits. Price Cost ATC Demand Quantity attempt remaining The diagram below shows the curves for Friedman Inc., a monopolistic competitor producing sauce pans. Move the point Q" to show the equtlibrium quantity of sauce pans that Friedman Inc. will produce. Pricel Cost MC ATC Demand MR lo Quantity