Assume the industry in Question 2 is now a monopoly - Now there is only one supplier. Of the 1000 firms all 999 have closed due to government order, only one remains! The demand curve in this market is given by the equation Price, P = $10 - [Q/1,000,000].

Example if Q = 3,000,000 units, Price = $10 - [3,000,000/1,000,000] = $7/unit

1. Calculate, plot and label the demand curve and the marginal revenue curve that the monopoly sees on the diagram below. Use the textbook as a guide. 10 Marks