consider a monopoly with a short run total cost of TC = 36 + Q^2 and marginal cost: MC = 2Q - facing a market demand curve of P = 40 - 2/3Q.

1. Graph and calculate the consumer surplus and profit for the monopolist in the short run. ( before it adjusts for a lower cost.)

2. Graph and calculate consumer surplus, profit, and deadweight loss for monopolist in the long run.

3. Graph the market as though it were perfectly competitive. (two graphs side-by-side.)

4. Find the consumer surplus and the number of firms in the market if it were perfectly competitive.