1. A monopoly firm holding a patent right faces a market demand given in the table. We c. Draw demand, MR and MC curves on the same graph. (Note: This question does not assume there is no fixed costs...

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Extracted text: 1. A monopoly firm holding a patent right faces a market demand given in the table. We c. Draw demand, MR and MC curves on the same graph. (Note: This question does not assume there is no fixed costs and the monopolist maximizes profit. carry any points, because the graph is drawn for you as below. You can use it directly to answer the following questions.) ΔTC You may want to construct columns ΔQ ΔTR a. Fill in the blanks. [Hint: MR = MC P = AQ for AQ, ATR, and ATC to find MR and MC.] 26 TR MR TC MC Profit 20 30 600 16 240 8 360 18 40 720 12 320 8 400 MC 16 50 800 8 400 8 400 14 60 840 4 480 8 360 MR D 12 70 840 560 8 280 b. From the table above, what is the price the monopoly firm would choose? d. Calculate the monopoly firm's optimal price and quantity using the given functions. Answer: 16$ Answer: Optimal price: $17 From now on, we will use the function forms of the previous table: Quantity: 45 units Demand: P = 26 - Q Marginal Revenue: MR = 26 -Q e. Show CS, PS, and DWL on your graph in part c. Calculate the exact size of CS, PS, TS, and DWL. Marginal Cost: MC = 8