Consider an industry with the demand curve (D) and marginal cost curve (MC) shown in the accompanying diagram. There is no fixed cost. If the industry is a single-price monopoly, the monopolist's marginal revenue curve would be MR. Answer the following questions by naming the appropriate points or areas.
a. If the industry is perfectly competitive, what will be the total quantity produced? At what price?
b. Which area reflects consumer surplus under perfect com- petition?
c. If the industry is a monopoly, what quantity will the monopolist produce? Which price will it charge?
d. Which area reflects the monopolist's profit?
e. Which area reflects consumer surplus under monopoly?
f. Which area reflects the deadweight loss to society from monopoly?