Problem 1 - The Melitz model and technology adoption This problem is based on a paper by Paula Bustos (2011). Consider the monopolistic competition model with productivity differences studied in class. To simplify it further, assume that the variable profit of a firm with marginal cost c is given by A, where A is some positive constant. Thus, the total profit of the firm is # - F (and remember that the fixed cost F must be paid before the firm learns its marginal cost c). 1. Is there a marginal cost draw c that is so bad that firms exit the market? Does the fixed cost matter for this decision, and why