PLEASE ANSWER ALL PARTS OF EACH QUESTION (WILL GIVE A GOOD RATING)
A. Consider a Monopoly with the following demand and cost structures:
1. First, label the relevant graphs correctly.
2. From the diagram what is the profit maximizing output of the monopolist? Why?
3. From the diagram what is the price that the monopolist charges on each unit she sells. Briefly explain.
4. Compute the Monopolist's profit?
5. If instead this was a perfectly competitive market, what would be the profit maximizing output of this market, and its price? Briefly explain.
6. If this was still a perfectly competitive market with the same cost structure as the monopolist, would the market to be in the short or in the long run? Briefly explain.