MindTap - Cengage Learning X Course Hero X *Course Hero * *Course Hero 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 EI point (triangle symbol) to shade the area that represents consumers' surplus, and use the purple point (diamond symbol) to shade the area that represents producers' surplus. + bongo Perfectly Competitive Market 5.0 + 4.5 PC Outcome 4.0 3.5 A ? A+ 3.0 Consumers' Surplus 2.5 PRICE (Dollars per hot dog) C- 2.0 Producers' Surplus S=MC O 1.5 10 43OF Q Search W 9:48 AM Sunny 4/6/2024 PREMindTap - Cenga X Course Hero * *Course Hero * *Course Hero X Course Hero X Dashboard X + X Minimize C https:/g.cengage.com/staticb/ui/evo/index.html?deploymentld=5813538219621591114194498&eISBN=978133.. M . . . CENGAGE | MINDTAP Q Search this course ? Homework: Monopoly (Ch 23) X Monopoly Outcome A-Z E Monopoly Profits o T PRICE (Dollars per dose) EI MC = ATC + N 1 2 MR Demand bongo 3 5 6 8 9 10 QUANTITY (Millions of doses per year) Suppose that should the patent on this particular drug expire, the market would become perfectly competitive, with new firms immediately entering the market with essentially identical products. (? A+ Further suppose that in this case the original firm will hire lobbyists and make donations to several key politicians to extend its patent for one more year. The firm is prepared to spend up to |$ million to extend its patent. C+ O Grade It Now Save & Continue Continue without saving 43.F 9:51 AM Sunny Q Search T W 4/6/2024 PRE