03. Market Structures: Ghapter 5 Monopolistic Competition {6 marks] {a} Explain the similarities and differences between the longrun equilibrium for a: {i} perfectly competitive rm, and 3 {ii} monopolistically competitive rm with examples. Illustrate your answer with a graph demonstrating the longrun equilibrium for the two types of rms. [4 marks} [b] Assume that two interior design companies Elaine and Alistair are competing for customers. and if they both advertise, they would each earn $30 million in prots. If neither advertises, they each earn $5D million in prots. If one advertises and the other doesn't, the rm that advertises earns $40 million in prot while the other earns $20 million in prot. {i} Present the information above in the form of a payoff matn'x. Let Eaine be the row player and Alistair the column player. [as mark} {ii} Does each rm have a dominant strater and if so, what is it? {1135 mark} {iii} Dene and explain the Nash Equilibrium in this example. {DIE mark}