8. The following exhibit, shows the profit maximizing
quantity and resulting quantity, profit, total revenue and
total cost for a monopoly market.
Using the following exhibit explain how the monopoly
market's results are different, when compared to what the
results would have been if the market was in perfect
competition:
Price ($)
Step 2: Look at demand curve to
see what price to charge
Marginal
cost
Average
cost
Step 3: Identify profit
Demand
Step1: MR MC
Marginal revenue
Quantity

D. Which market would have greater net consumer and
producer surplus?