The question is stated below.

Suppose that a rm produces baseball bats in a monopolistically competitive market. The following graph shows its demand curve, marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. Place a black paint (plus symbol) on the graph to indicate the long-run monopolistically competitive equilibrium price and quantity for this firm. Next, place a grey point (star symbol) to indicate the minimum average total cost the rm faces and the quantity associated with that cost. (9 100 "I' Mon Comp Outcome at 80 7o 60 Min Unit Cost 50 40 PRICE (Dollars per bat) 30 20 1O QUANTITY (Thousands of bats) Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that v at the optimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibriu V the minimum average total cost. True or False: This indicates that there is a markup on marginal cost in the market for bats. 0 True 0 False Monopolistic competition may also be socially inefcient because there are too many or too few rms in the market. The presence of the V externality implies that there is too little entry of new rms in the market. Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that V at the optimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is the minimum average total cost. equal to True or False: This indicates that there is a markup on marginal cost in the market for bats. greater than O True less than O False Monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. The presence of the externality implies that there is too little entry of new firms in the market.Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact that at the optimal quantity for each firm. Furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium is the minimum average total cost. True or False: This indicates that there is a markup on marginal cost in the market for bats. O True product variety business-stealing tion may also be socially inefficient because there are too many or too few firms in the market. The presence of the externality implies that there is too little entry of new firms in the market