the supply curve is given Qs= P and the demand curve is given by Qd = P QD = 12 -. 5P Q and mariginal cost is zero 1. there was a monopoly, with the same supply curve. Given the option between selling 6,000, 8,000 and 10,000, which would the monopolist choose? What will the consumer surplus be? 2. Graphically represent the effects of an increase in demand.

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Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.