The market structure of the local coffee shop industry is monopolistic competition. Suppose that currently each coffee shop incurs a loss (SR profits are negative) at Q*. a. Draw a graph for a typical...

The market structure of the local coffee shop industry is monopolistic competition. Suppose that currently each coffee shop incurs a loss (SR profits are negative) at Q*. a. Draw a graph for a typical coffee shop to show this SR situation. b. Explain what will happen as this industry moves to the LR. c. Draw a graph for a typical coffee shop in the LR. d. Show the DWL relative to the efficient level of output (P = MC) on your LR graph.