Compute social welfare cost of the monopoly

Question

The cost and demand schedules for a market are given below:

P                      Q_d                    TR                  MR                 TC                  ATC               MC

$20                  0                                                                      $0

 19                   1                                                                      13

 18                   2                                                                      26

 17                   3                                                                      39

 16                   4                                                                      52

 15                   5                                                                      65

 14                   6                                                                      78

 13                   7                                                                      91

 12                   8                                                                      104

a. Complete the rest of the table and graph the demand, MR, ATC and MC curves in a single diagram.

b. If the market is perfectly competitive and produces where P=MC, what level of output will be pro­duced and what price will be charged? Show your result graphically.

c. If the market is taken over by a monopolist, what price and output maximizes the profit of the monop­olist? Calculate and show graphically, the profits of the monopo­list.

d. Calcu­late and show graphically the social welfare cost of the monopoly.