1. The diagram above shows the cost and revenue curves for a monopoly. a. How does a monopolist determine its profit-maximizing level of output and price? b. Applying the information in the graph, identify each of the following for the monopolist. i. The profit maximizing level of output and price ii The line segment of the demand curve that is elastic. c. Suppose the industry depicted in the graph became perfectly competitive without changing the demand or cost curves. Identify the equilibrium price and output which would prevail in a perfectly competitive market. (Hint: MR Will shift.) d. Using the information in the graph, identify the area of consumer surplus for each of the following i. The profit-maximizing monopoly ii. The perfectly competitive industry e. Define allocation efficiency. f. To be allocationy efficient, what level of output should the monopolist produce? g. Should the government use a per-unit tax or a per-unit subsidy to lead the monopolist to produce the allocationy efficient level of output? Explain how this tax or subsidy will achieve the allocationy efficient level of output