Question
(5 points) Consider an industry with the demand curve (D) and the marginal cost curve (MC) shown in the accompanying diagram. There is no fixed
(5 points) Consider an industry with the demand curve (D) and the marginal cost curve (MC) shown in the accompanying diagram. There is no fixed cost. If the industry is a single-price monopoly, the monopolists marginal revenue curve would be MR. Answer the following questions by naming the appropriate points or areas.
9a. If an industry is perfectly competitive, the total quantity produced will be at point ________? 9b. If an industry is perfectly competitive, the equilibrium price will be at point ________? 9c. If an industry is perfectly competitive, consumer surplus is the triangle area of points_____? 9d. If an industry is a single-price monopoly, consumer surplus is the triangle area of points ___? 9e. If the industry is a single-price monopoly, the total quantity produced by the monopolist will be at point ________? 9f. If industry is a single-price monopoly, the price charged by the monopolist will be at point__? 9g. The rectangle area that is the single-price monopolists profit is ________ ? (Hint, recall that there are no fixed costs). 9h. The triangle area that represents the deadweight loss to society that is a result of the price and quantity offered by the single-price monopoly is ___________? 9i. If the monopolist can price-discriminate perfectly, the quantity that the perfectly price- discriminating monopolist produces is at point ________? 9j. If the monopolist can price-discriminate perfectly, the range of prices that the perfectly price- discriminating monopolist will charge is represented by the prices between the two points ____ and ____?
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