1.Let's compare the price and output decisions of a competitive firm versus a monopoly. ExamineDiagram 1below and answer the questions that follow. (40 points)

Diagram 1

a.In Diagram 1 above, suppose the industry is a competitive one. What would be the price charged and quantity exchanged? Explain how you derived your answer. (10pts)

b.Now, assume Diagram 1 represents an industry that is a monopoly. What would be the prevailing price and quantity exchanged? Explain. (10pts)

c.Assume Diagram 1 represents an industry that is a monopoly. What would be the profit per week? Show your calculations. (10pts)

d.At what point (C, E, F, or G) on Diagram 1 doesallocativeefficiency occur? Explain. (10pts)