Consider the weekly market for gyros in a popularneighborhood close to campus. Suppose this market is operating in long-run competitiveequilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors actas price takers and each individual vendor has no market power.The following graph displays the supply (SMC) and demand (D) curves in the weekly market for gyros.Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition.(?)(0)5045PRICE (Dollars per gro)4.03.5302.0151.0D3.53025Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obcain exclusive rights to sell gyros in theneighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change doesnot affect demand and that the marginal cost curve of the new monopoly corresponds exactly to the supply curve from the previous graph. Thefollowing graph reflects this new set of assumptions, and shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves themonopoly vendor.20Place the black point (plus symhol) on the following graph to indicate the profit maximizing price and quantity of a manopolist.?15.1.D0.530 ep030Competitive Market150 180 210 240 270 300QUANTITY (Gyros)9-MCMonopolyCompetitiveMonopolyMCMRR 125 150 100 215 240 270 300QUANTITY (Gyros)PriceMarket Structure (Dollars)CompetitiveMonopolyPC OutcomeDConsider the welfare effects that result from the industry operating as a competitive market versus a monopoly.On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by amonopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody.PriceMarket Structure (Dollars)Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitiveoutcome+In the following table, enter the price and quantity that would arise in a competitive market: then enter the profit-maximizing price and quantity thatwould be chosen if a monopolist controlled this market.Quantity(Gyros)Monopoly OutcomeDeadweight LossQuantity(Gyros)Given the summary table of the two different market structures, you can infer that, in general, the price is higher under aand the quantity is lower under a▼In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity thatwould be chosen if a monopolist controlled this market.Given the summary table of the two different market structures, you can infer that, in general, the price is higher under aand the quantity is lower under amonopolycompetitive market

The competitive market experiences a number of buyers and sellers. None of these buyers or sellers…

Consider the weekly market for gyros in a pepular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power The following graph displays the supply (SMC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market proe and quantity that will result from compotition (?) PRCE (Dallas pergy) 40 35 and sec (o sc) 15 D 40 25 10 0.5 20 Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obcan exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly. Assume that this change does not affect demand and that the merginal cost curve of the new monopoly corresponds exactly to the supply curve from the previous graph. The following graph reflects this new set of assumptions, and shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly vendor. - Competitive Market Place the black point (plus symbol) on the following graph to indicate the profit maxmining price and quantity of a manopolist. (?) QUANTITY() S-MC Monopoly MR Competitive Monopoly MIC QUANTITY (Gyros) D 210 Price Market Structure (Dollars) 900 D + PC Outcome 3710 300 Quantity (Gyros) + Consider the welfare effects that result from the industry operating as a competitive market versus a monopoly. Monopoly Outcome On the monopolygraph, use the black points (plus symbol) to shade the area that represents the loss of woltare, or desdweight loss caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody Deadweight Loss Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome In the following table, enter the price and quantity that would arise in a competitive market then enter the profit-meximizing price and quantity that would be chosen if a monopolist controlled this market Given the summary table of the two different market structures, you can infer that, in general, the price is higherunder a and the quantity is lower under a ▼