5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply curves (S = MC) in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. Use the green point (triangle symbol) to shade the area that represents consumer surplus, and use the purple point (diamond symbol) to shade the area that represents producer surplus. PRICE (Dollars per hot dog) 5.0 4.5 4.0 3.5 3.0 2.5 Competitive Market PC Outcome Consumer Surplus 2.0 Producer Surplus S=MC 1.5 1.0 0.5 D 0 0 50 100 150 200 250 300 350 400 450 500 QUANTITY (Hot dogs) ?