9. Selena is a single-price, prot-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown. (L04, 105, L06) Ouncesiday a. Relative to the consumer surplus that would result at the socially optimal quantity and price, how much consumer surplus is lost from her selling at the monopolist's prot-maximizing quantity and price? b. How much total surplus would result if Serena could act as a perfectly pricediscriminating monopolist? surplus is ($50 7 $35.) + ($46 7 $34) + ($42 7 $34) + ($33 7 $34) + ($34 7 $34) + ($30 7 $22) + ($26 $22) + ($22 $22), or $52. learning Objective: 08-05 and 08-06 AACSB: Knowledge Application Bloom's: Apply 9. a. See graph below. The profit-maximizing quantity is 8, the quantity for which MR = MC. The socially optimal quantity in this market is 12, the quantity for which MC = M3 (that is, where the MC curve intersects the demand curve). The loss in total surplus that results when Q falls from 12 to 8 is the area of the shaded triangle, or $40 per day. Note that half of this loss comes from a reduction in consumer surplus and half comes from a reduction in producer surplus. S par minus 60 50 45 4O 30 20 16 1D 0 4 s a 12 1s 24 mummy I). See graph below. A perfectly discriminating monopolist would sell each unit for exactly the buyer's reservation price, so the marginal revenue curve and the demand curve become the same. Serena will thus produce and sell 12 ounces per day. Buyers get no consumer surplus. Total surplus is equal to producer surplus. which is the area of the shaded triangle below, $360 per day