-Refer to Figure 9-8

Essay

-Refer to Figure 9-8. Use the figure above to answer the following questions.
a. Identify the curves labeled A and B. Identify the curve which contains both point Y and point Z. Identify the curve which contains both point V and point W.
b. What is the profit-maximising quantity and what price will the monopolist charge?
c. What area represents total revenue at the profit-maximising output level?
d. What area represents total cost at the profit-maximising output level?
e. What area represents profit?
f. What is the profit per unit (average profit) at the profit-maximising output level?
g. If this industry was organised as a perfectly competitive industry, what would be the profit-maximising price and quantity?
h. What area represents the deadweight loss as a result of a monopoly?