• The equilibrium market price (mark it as P2 on the vertical axis).

• The Watsonias equilibrium level of the long-run average cost (mark it as LAC2 on the

  vertical axis).

• The Watsonias long-run equilibrium output (mark it as Q* on the horizontal axis).

• The long-run profit area (shade the profit area). Type on the shaded area either Positive

  Profits or Negative Profits depending on whether there are positive or negative profits, respectively. If there is Zero Profits, do not type anything or shade anything. In other words, no shadings means that profits equal zero after the advertising campaign is executed. Important: Only shade the profit areas AFTER the advertising campaign is executed. Do not show (shade) the profit areas before the advertising campaign is executed.

  Diagram 1: A1B5

  Diagram 2: A5B3

  Diagram 3: A5B1

  Diagram 4: A5B5

  Diagram 5: A2B5

  Diagram 6: A3B4