What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below

ENGR.ECONOMIC ANALYSIS
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What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below
Question #4: Below are the demand and cost schedules for Rogaine (a drug used to treat male
baldness). Assume that the drug company has a monopoly on selling Rogaine.
TR
MR
TC =
MC
Quantity
Demanded
Marginal
Total
Marginal
Cost
Price
Total
Revenue
Revenue
Cost
70
100
--
--
1
65
65
65
105
2
60
(i)
55
108
3
3
55
165
45
114
(iv)
4
50
200
(ii)
123
9.
45
225
25
(iii)
12
6.
40
240
15
150
15
7
35
245
168
18
30
240
-5
189
21
9
25
225
-15
214
25
10
20
200
-25
243
29
Transcribed Image Text:Question #4: Below are the demand and cost schedules for Rogaine (a drug used to treat male baldness). Assume that the drug company has a monopoly on selling Rogaine. TR MR TC = MC Quantity Demanded Marginal Total Marginal Cost Price Total Revenue Revenue Cost 70 100 -- -- 1 65 65 65 105 2 60 (i) 55 108 3 3 55 165 45 114 (iv) 4 50 200 (ii) 123 9. 45 225 25 (iii) 12 6. 40 240 15 150 15 7 35 245 168 18 30 240 -5 189 21 9 25 225 -15 214 25 10 20 200 -25 243 29
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