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Please answer the following questions: – In a monopolistically competitive marke

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Please answer the following questions:
– In a monopolistically competitive market, the government applies a specific tax of $1 per unit of output. What happens to the profit of a typical firm in this market? Does the number of firms in the market rise or fall? Why?
– What is the effect on prices and the number of firms under monopolistic competition if a government provides a subsidy that reduces the fixed cost of each firm in the industry?
– We learned that a monopolistically competitive firm maximizes its profit where it is operating at less than full capacity. Does this result depend upon whether firms produce identical or differentiated products? Why?
– Under monopolistic competition with identical firms, is it possible for a firm to produce at the minimum
of its average cost curve?
– One of the hottest trends in 2018 was rental scooters. San Francisco capped the number of scooter companies at six. Thus, a market that was going to be monopolistically competitive became, at least in the short run, an oligopoly. What effects does such a barrier to entry create an equilibrium market quantity, price, profits, consumer surplus, and total surplus?
Your responses should be 2 to 3 pages in length. Make sure to follow APA style 7th edition format. Include at least two external resources, in addition to the text.

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