Include correctly labeled diagrams, if useful or required, in explaining your answers

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Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. If the question prompts you to "Calculate," you must show how you arrived at your final answer.

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

(i) The profit-maximizing quantity, labeled Q

M

(ii) The profit-maximizing price, labeled P

M

(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 Q

PD

(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.