2. (Monopolistic Competition and Perfect Competition Com- pared) Illustrated below 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?

1. (Monopolistic Competition and Perfect Competition Com- pavedillustrated below are the marginal cost and aver- age 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. h. Label the price and quantity p and q- e. Draw in a demand and marginal revenue curve to illus. trate long-run equilibrium if the firm is monopolistically competitive. Label the price and quantity p, and q. How do the monopolistically competitive firm's price and output compare to those of the perfectly competi- tive firm? *. How do long-run profits compare for the two types of firmat MC ATC Dollars per unit Quantity