4. The market for Woozle used to be perfectly competitive, but then Woozlesoft Inc. monopolized production of Woozle. Suppose that the inverse market demand for Woozle is: P = 8000 – 15Qa, the...

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Extracted text: 4. The market for Woozle used to be perfectly competitive, but then Woozlesoft Inc. monopolized production of Woozle. Suppose that the inverse market demand for Woozle is: P = 8000 – 15Qa, the marginal revenue for the monopoly is: MR = 8000 – 30Q, and the marginal cost for the firm is: MC = 2000 + 10Q, where the MC curve is the same under both perfect competition and monopoly. a. Sketch the demand curve, MR, and MC. b. Calculate the monopoly output and the monopoly price. c. Compute the market output and price that occurred when the market for Woozle was perfectly competitive. Compare the competitive price and quantity to the monopoly price and quantity. d. Compute consumer surplus and producer surplus when the market was competitive. e. Compute consumer surplus and the monopoly surplus after Woozlesoft monopolizes production. f. Using parts d and e, compute the total surplus under perfect competition, the total surplus under the monopoly, and the change in total surplus. Is the monopoly economically desirable? g. Who gains and who loses from the monopolization of the industry? Explain using numbers. h. Using only your answers to part (g), calculate the change in total surplus. Compare to part (f). i. Shade the deadweight loss on your sketch and calculate it directly. Compare to part (f).