Question 3
(a) Draw and clearly label a diagram that shows the level of
output at which a monopoly maximises profits. Show the monopoly
price and level of profits made by your monopoly firm. Use 2 or 3
sentences to explain the key features of your diagram.
(b) Refer to the diagram you drew for part (a). How is this
situation similar to that of a competitive market? How is it
different? Explain the reason(s) for each of the differences...