Question: Illustrated are the marginal cost and average total cost curves for a small firm that is in long-run equilibrium. a. Locate the long-run equilibrium price

Illustrated are the marginal cost and average total cost curves for a small firm that is in long-run equilibrium.
a. Locate the long-run equilibrium price and quantity if the firm is perfectly competitive.
b. Label the price and quantity p1 and q1.
c. Draw in a demand and marginal revenue curve to illustrate long-run equilibrium if the firm is monopolistically competitive. Label the price and quantity p2 and q2.
d. How do the monopolistically competitive firm€™s price and output compare to those of the perfectly competitive firm?
e. How do long-run profits compare for the two types of firms?

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