$P=6-Q$

a$)$ Fill in the below table and plot a diagram showing the firm's average revenue and marginal

revenue.

b$)$ Add a typical$-$looking marginal cost and average cost curve to the diagram $($or draw a new

diagram including the cost curves$).$ Show the monopolist's profit$-$maximizing quantity to

produce, the market price given that quantity, and the profit that the firm will earn. $($No need

to calculate precise numbers, just illustrate on the diagram. Label these clearly.$)$ Explain how

the monopolist firm chooses its profit$-$maximizing price and quantity. Is it possible for the

firm to sustain this profit in the long$-$run?

c$)$ Assume the market supply curve can be represented by the firm's marginal cost curve. In

either the same diagram or a new diagram $($whichever you prefer$),$ label consumer and

producer surplus under a competitive equilibrium and in the situation with the monopoly.

Label the deadweight loss.

d$)$ Given that a monopoly does not face competition from other firms, why can't it charge any

price it wants for the good it produces? Or put slightly differently, if a monopoly decides to

charge a certain price, what force determines how much quantity it can sell at that price?