& ThuApr11 10:26PM Q (ORNGIE @& Safari File Edit View History Bookmarks Window Help L ARG @ ng.cengage.com \"pocy] % MindTap - Cengage Learning Resum LT :W CENGAGE ' MINDTAP Q search this course 0 X Module Six Quiz 2. Monopoly outcome versus competition outcome Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive PROFILE equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act ORDERS as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. RENTALS Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. COURSES v 7\\ Q@ Competitive Market Study Tools P College Success Tips PC Outcome Career Success Tips [ o Help PRICE (Dollars per gyro) | i [c]\\o) & ThuApr11 10:26PM Q (ORNGIE @& Safari File Edit View History Bookmarks Window Help L G ARIRY @ ng.cengage.com \"pocy] % MindTap - Cengage Learning Resum LT :W CENGAGE ' MINDTAP Q search this course Module Six Quiz @ X Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does PROFILE not affect demand and that the marginal cost curve of the new monopoly corresponds exactly to the supply curve from the previous graph. The following graph reflects this new set of assumptions, and shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the ORDERS monopoly vendor. RENTALS Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity of a monopolist. COURSES v Monopoly Study Tools 2 o Monopoly Outcome Deadweight Loss College Success Tips Career Success Tips @ 0 Help PRICE (Dollars per gyro) | i [c]\\o) Safari File Edit View History Bookmarks Window Help Q Thu Apr 11 10:26PM