1- This firm : cannot make a profit. can make a profit. is in a competitive market. does not want to maximize profit. is not a monopolist because it...

1- This firm :

A. cannot make a profit.

B. can make a profit.

C. is in a competitive market.

D. does not want to maximize profit.

E. is not a monopolist because it is incurring a loss.

2- The profit-maximizing price and quantity are ________, respectively.

A. $45 and 1,500  B. $40 and 1,500  C. $70 and 1,000   D. $25 and 1,000   E. $50 and 1,000

3- Use the figure below to answer the questions that follow.

Part 1

(a) Which area represents consumer surplus under perfect competition? 

 (b) Which area represents producer surplus under perfect competition? 

Part 2

(a) Which area represents consumer surplus under monopoly? 

 (b) Which area represents producer surplus under monopoly? 

Part 3

Which area represents the deadweight loss associated with a monopoly?