Let's compare the price and output decisions of a competitive firm versus a monopoly. Examine Diagram 1 below and answer the questions that follow. Diagram 1a. In Diagram 1 above, suppose the industry is a competitive one. What would be the price charged and quantity exchanged? Explain how you derived your answer.b. Now, assume Diagram 1 represents an industry that is a monopoly. What would be the prevailing price and quantity exchanged? Explain.c. Assume Diagram 1 represents an industry that is a monopoly. What would be the profit per week? Show your calculations.d. At what point (C, E, F, or G) on Diagram 1 does allocative efficiency occur? Explain.

20 | | | 600 1600 Quantity per week a. In Diagram 1 above, suppose the industry is a competitive one. What would be the price charged and quantity exchanged? Explain how you derived your answer. b. Now, assume Diagram 1 represents an industry that is a monopoly. What would be the prevailing price and quantity exchanged? Explain. 0. Assume Diagram 1 represents an industry that is a monopoly. What would be the prot per week? Show your calculations. (1. At what point (C, E, F, or G) on Diagram 1 does allocative pmr'ipnr'v nr'r'nr') Pvnlnin