a) Draw a correctly labeled graph for a monopoly and show each of the following. i. The profit-maximizing quantity, labeled QM ii. The profit-maximizing price, labeled PM b) Assume the monopoly now...

a) Draw a correctly labeled graph for a monopoly and show each of the following.

i. The profit-maximizing quantity, labeled QM

ii. The profit-maximizing price, labeled PM

b) Assume the monopoly now engages in perfect price discrimination. On your graph in part (b),

show the profit-maximizing quantity for the price discriminating monopoly, labeled QPD .

c) Based on your answer to part (b), will a perfectly competitive market produce a larger, smaller,

or the same quantity as the perfectly price discriminating monopolist? Explain.