1,2, 3. Consider the fast-casual dining market. Explain how it matches the three characteristics of monopolistic competition. Label them 1, 2, 3. These are features (# sellers, entry and exit conditions, and comments on the firm's product/service relative to other firm's product/service) that constitute a monopolistic competition. Use the graph below for 4. Suppose the graph below shows the conditions under which a representative restaurant in a local fast-casual dining market operates. 4. Based on what you observe in the graph above, will other firms want to enter this fast-casual dining market? Yes or no and explain why. 5. What is product differentiation? 6. How could a fast-casual dining restaurant differentiate itself from its competitors? 7. Why do firms operating under monopolistic competition make zero economic profit in the long run? 8. How does the price that a firm operating under monopolistic competition compare to the price that perfect competitor would charge? 9. How does the quantity that a firm operating under monopolistic competition compare to the quantity that perfect competitor would charge? 10. What is one benefit to consumers from the monopolistic competition market structure?