1. (5 points) Monopoly and equilibrium a. (2 points) Lorde gets smart and realizes that she is a monopolist with the only quality bistro around. Calculate the marginal revenue she gets for each additional serving as the change in total revenue (price times sales). Graph this. What is the new quantity of sales and the new price?

b. (1 point) Shade in the entire area of consumer surplus on your monopoly graph. Shade in the entire area of producer surplus.

c. (2 points) Estimate consumer and producer surplus under perfect competition and under monopoly. What is the dollar value of each, and of total social surplus? Which is better for consumers? Which is better for producers? Which is better for society? Explain.

Renall I orda from DC1 Relrea the tahlee vou produced there based on: 1. (5 points) Monopoly and equilibrium a. (2 points) Lorde gets smart and realizes that she is a monopolist with the only quality bistro around. Calculate the marginal revenue she gets for each additional serving as the change in total revenue (price times sales). Graph this. What is the new quantity of sales and the new price? b. (1 point) Shade in the entire area of consumer surplus on your monopoly graph. Shade in the entire area of producer surplus. c. (2 points) Estimate consumer and producer surplus under perfect competition and under monopoly. What is the dollar value of each, and of total social surplus? Which is better for consumers? Which is better for producers? Which is better for society? Explain. Renall I orda from DC1 Relrea the tahlee vou produced there based on: 1. (5 points) Monopoly and equilibrium a. (2 points) Lorde gets smart and realizes that she is a monopolist with the only quality bistro around. Calculate the marginal revenue she gets for each additional serving as the change in total revenue (price times sales). Graph this. What is the new quantity of sales and the new price? b. (1 point) Shade in the entire area of consumer surplus on your monopoly graph. Shade in the entire area of producer surplus. c. (2 points) Estimate consumer and producer surplus under perfect competition and under monopoly. What is the dollar value of each, and of total social surplus? Which is better for consumers? Which is better for producers? Which is better for society? Explain