1. a. Carefully draw a graph showing cost and revenue curves for a monopoly. Be sure to label the curves and axes. Because you'll have several things to do on this graph, draw a large scale graph.
b. On your graph, show what price the monopolist will charge and what quantity it will produce in order to maximize profit.
c. Shade (or describe carefully) the boundaries of the economic profit for the monopolist and shade (or describe carefully) the location of the deadweight loss that occurs with monopoly.
d. Assume your monopoly is broken into hundreds of competing small firms under conditions of perfect competition. Using your monopoly graph, show what price and quantity equilibrium under perfect competition. What does this tell us above the impact of a monopoly?