Use the following to answer questions (26) - (30): Consider a representative firm in a monopolistically competitive market. The firm's demand depends on the number of firms in the market. That is, the firm's demand (written in inverse form) is: P = 200 -n - q, where P is the price charged by the firm, n is the number of firms in the market, and q is the firm's production/sales. Suppose further that the firm's long run total cost is constant at 100, thus making long run average cost equal to TC/q = 100/q and marginal cost equal to 0. Note that the firm's marginal revenue can be written as MR = 200 - n - 2q. [26] Suppose there are 100 firms in the market. What price will this firm wish to charge to maximize its long-run profit? A. 75 B. 50 C. 25 D. 0 [27] As n increases, this causes the firm's demand curve to shift inwards. A. True B. False [28] At the long-run equilibrium, what is the value of q? A. 10 B. 25 C. 50 D. None of the above [29] At the long-run equilibrium, how many firms will be in the market? A. 10 B. 100 C. 180 None of the above [30] The firm's demand curve is downward sloping because: A. of free exit. B. of free entry. firms sell slightly differentiated products All of the above