Homework: Monopoly X MindTap - Cengage Le: X Course Hero * *Course Hero X Chapter 23 Quiz: 20245 X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... . . . > > CENGAGE | MINDTAP Q Search this course ? Homework: Monopoly (Ch 23) X 5. Monopoly outcome versus perfectly competitive outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run perfectly competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. A-Z E The following graph shows the demand (D) and supply curves (S = MC) in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from perfect competition. Use the green point (triangle symbol) to shade the area that represents consumers' surplus, and use the purple point (diamond symbol) to shade the area that EI represents producers' surplus. + bongo Perfectly Competitive Market 5.0 .+ 4.5 4.0 PC Outcome 3.5 A ? A+ 3.0 Consumers' Surplus PRICE (Dollars per hot dog) 2.5 C- 2.0 Producers' Surplus S=MC O 1.5 05 52OF Light rain Q Search 3:46 PM 4/7/2024 PREHomework: Monopoly X MindTap - Cengage Le: X Course Hero * *Course Hero X Chapter 23 Quiz: 20245 X + X C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133... . . . CENGAGE | MINDTAP Q Search this course ? Homework: Monopoly (Ch 23) X (? Perfectly Competitive Market A-Z 5.0 4.5 4.0 PC Outcome EI A 3.5 3.0 Consumers' Surplus PRICE (Dollars per hot dog) 2.5 bongo 2.0 Producers' Surplus S=MC 1.5 1. 0.5 D 0 0 10 ? 20 30 40 50 60 70 80 90 100 A+ QUANTITY (Hot dogs) Assume that one of the hot dog vendors successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog vendors in the city and operates as a monopoly. Assume that this change doesn't affect demand and that the O new monopoly's marginal cost curve corresponds exactly to the supply curve on the previous graph. Under this assumption, the following graph shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly firm. 52.F Q Search T 3:46 PM Light rain 4/7/2024 PRE