A.2: Consider the case of monopoly who faces a downward sloping demand curve and is to charge a single price for all its consumers. The firm is to maximize its profit. P, MR, MC MC A Demand Quantity MR (1) What is the social optimal quantity, Q*? (Pick from E, J, M, N, and R.) Answer: Q* = What is the social optimal price, P*? (Pick from A, B, C, D and E.) Answer: P* = (2) What is the area for consumer surplus under the social optimal solution in (1)