The graph below represents a monopolist\'s demand, marginal revenue, and margina

Question

The graph below represents a monopolist's demand, marginal revenue, and marginal cost curves. Use this graph to answer the questions that follow. What is the "efficient" perfectly competitive equilibrium quantity (Qc) and price (Pc)? I am looking for NUMERICAL ANSWERS here. Suppose this perfectly competitive market becomes a monopoly. What is the monopolist's profit-maximizing quantity (Q_M) and profit-maximizing price (P_M)? I am looking for NUMERICAL ANSWERS here. Complete the following table. I am looking for NUMERICAL ANSWERS here.

Explanation / Answer

(a) Qc = 180 ;   Pc = $45

(b) QM = 120 ; PM =$60

(c)

Perfect competition Monopoly Change Consumer surplus($) 4050 (i.e. 180 x 45/2) 1800 (i.e. 120 x 30/2) 2250 Producer Surplus($) 4050 (i.e.180 x45/2) 5400 [i.e. (120 x 30) + (120 x30/2) 1350 Total Surplus($) 8100 7200 900

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