1) Explain why the market demand curve slopes down and the individual firms demand curve is horizontal.2) Explain why the marginal revenue curve lies below the demand curve.3) If location is used for differentiation, why do fast-food restaurants tend to be clustered together? Where you find a McDonalds, you usually find a Taco Bell or a Wendys nearby.4) Explain why a firm is making an economic profit when the demand curve lies above the ATC curve.5) Explain why the marginal revenue curve lies below the demand curve.6)In recent years, the drug trade, once the province of Colombian drug families, has been taken over by Mexican cartels. Suppose two of the cartels are considering future actions, whether to share the market or attempt to take the market. The situation is represented in the following table. What is the outcome of this situation?SinaloaShare Market Take Market Share Market Sinaloa = $ 75 Sinaloa = $150Gulf Gulf = $75 Gulf = 0Take Market Sinaloa = 0 Sinaloa = $50 Gulf = $150 Gulf = $507) In Chapter 2, an arbitrage process involving the introduction of the Mazda Miata sports car was discussed. Arbitrage stopped when no more profit was attainable from buying the car in Detroit and selling it in Los Angeles. Explain how this arbitrage is what occurs in the long run adjustments of firms entering an industry.