The equations for the demand curve and the marginal revenue curve are given as follows:

P = 80 - Q

MR = 100 - 2Q,

Suppose the monopolist has constant marginal costs of production given by MC = 20 and

total costs given by TC = 20Q + 1000. Using this information and the information above

on the graph mark: The monopolist's quantity Q The monopolist's price P Draw the

MC curve label on the diagram.

Profit maximization condition: MR = MC, Using this you may proceed to find the

quantity and after you find the quantity you may find the price.

Use the demand curve to find the price that the monopolist will charge.

After labeling the graph with price and quantities from the above equation, find the

consumer surplus for monopoly and perfect competition. Label the area of consumer surplus, producer surplus

Price DWL P Marginal Cost MR Demand Q- Quantity