Question 3 Not yet Suppose that the cellular phone market is serviced by a monopolist. Consumers' preferences in this market are summarised by answered Q= -. 1 53 'D+ 654 Marked out of 53 $700 The monopolist has the following marginal cost function MC(q) = 128+31 q The consumers' preferences above are summarised in the form of an Inverse Demand function Demand function What is the optimal quantity the monopolist will supply the market and what is the price the monopolist will set What are the profits accumulated by the monopolist Now suppose the market is supplied by perfectly competitive firms with the same aggregate cost structure as the monopolist. What is the optimal quantity the perfect competitive industry will output and what is the prevailing price What are the profits accumulated by the perfectly competitive industry What is the consumer surplus under monopoly What is the monopolist producer surplus What is the consumer surplus under perfect competition What is the producer surplus under perfect competition What is the dead weight loss from monopoly