Redo Problem 7a to e with an initial inverse demand given by — what price should this firm sell its product — monopolistically competitive you think would happen the moves toward

Redo Problem 7a to e with an initial inverse demand given by:

P = 45 – Q

In Problem 7

a. At what price should this firm sell its product?

b. If this is a monopolistically competitive firm. What do you think would happen as the firm moves toward die long run? Explain.

c. Suppose in the long run, that inverse demand shifts to P = 25 – 0.2Q. What should the firm do? Explain. Provide graphs for both the short-run and long-run scenarios. Make sure your graphs include demand. MR. MC, and AC.

d. Suppose, in the long run, that inverse demand shifts to P = 45 – 0.8Q. What should the firm do Explain, and provide graphs for both the short-run and long-run scenarios. Make sure your graphs include demand, MR, MC. and AC.,