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$38 $36 $34 $32 $30 $28 S = MC $26 $24 $22 $20 $18 $16 $14 $12 D MB $10 58 $6 $4 $2 so 0 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 Quantity (Q) The graph above shows the supply and demand functions for a product produced in a small country in a perfectly competitive industry. The demand function is the sum of the demand functions of all the consumers in this country, the same as their marginal benefit functions. The supply function is the sum of the marginal-cost functions of all the firms in the industry. Start from the beginning. A rich dude buys all the firms in this industry and forms a monopoly. So, now the demand function is the function faced by this newly formed monopolist and the supply function is this monopolist's marginal cost function. After a while the monopolist learns how to perfectly price discriminate. Because of this new pricing policy, consumer surplus will change to: C CS = $4 CS = $6 CS = $8 CS = $10 None of the above.$38 $36 $34 $32 $30 $28 S = MC $26 $24 $22 $20 $18 $16 $14 $12 D = MB $10 $8 $6 SO 16 0 5 6 7 8 9 10 11 12 13 14 15 Quantity (Q) The graph above shows the supply and demand functions for a product produced in a small country in a perfectly competitive industry. The demand function is the sum of the remand functions of all the consumers in this country, the same as their marginal benefit functions. The supply function is the sum of the marginal-cost functions of all the firms in the industry. Start from the beginning. A rich dude buys all the firms in this industry and forms a monopoly. So, now the demand function is the function faced by this newly formed monopolist and the supply function is this monopolist's marginal cost function. The monopolist incurs a fixed cost of $40. What is its economic profit? $68 $74 C $78 C $80 None of the above