Show transcribed image text(a) In a monopoly in order to sell additional unit price must be reduced whereas in a…View the full answerTranscribed image text: Answer all parts of this question: (a) Explain why-unlike perfect competition-MR is less than AR (demand) under monopoly. [3 marks] (b) What is the profit-maximizing price and output for the monopoly firm? [3 marks] (c) What would equilibrium price and output be under perfect competition? (3 marks) (d) Identify the areas on the graph that refer to consumer surplus under (1) monopoly, and (i) perfect competition. (4 marks) Marginal Cost Average Total Cost PRICE/COST P₂ Q₁ Q₂ QQQs Marginal Revenue Demand OUTPUT
