AP MICROYou will draw the graph of a firm operating in a monopolistic competitive market structure.

AP MICROYou will draw the graph of a firm operating in a monopolistic competitive market structure.  ** Be very careful when drawing your ATC curve – especially the long-run **In the sort-run,- The firm’s profit maximizing quantity is 1000 units.- When Q = 1000, Price = $10.00, ATC = $6.00 and MC = $4.00.- Is the firm generating an economic profit/loss? __________ How much? __________Because the firm is generating economic profits/losses in the short-run, the firm’s demand and marginal revenue curves will shift.In the long-run,The firm’s new profit maximizing quantity and price are 800 units and $8.00.In the same graph, draw the new demand and marginal revenue curvesIn the long-run, is the firm generating an economic profit/loss? __________ Why? ___________In the long-run, is the firm producing the efficient social quantity? __________ Why? __________