Consider Hastur, an author promoting her new book, The King in Yellow.

i) Will Hastur compete as a monopolist, an oligopolist, or a monopolistic competitor? Why?

ii) Given your answer to (i), would you expect Hastur to sell her book at, below, or above marginal cost? Why?

iii) Will Hastur be able to make positive profits in the long run? Comment on how your answers to (ii) and (iiI) can coexist.

iv) Suppose another author, Abdul Alhazred, comes out with a stylistically similar book, The Whisperer in Darkness. What would you expect to happen to the price and quantity sold of The King in Yellow?