Perfect competition and equilibrium a 1 point put the

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3.(4 points) Perfect competition and equilibrium. a.(1 point) Put the demand and supply curves together (at the original productivity and wages). Rihanna is a musician and never took Economics, so she naively assumes that she is in a perfectly competitive market. How many servings will she sell? At what price?
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1234567891 0$0.00 $5.00 $10.00 $15.00 $20.00 $25.00 $30.00 $35.00 $40.00 MU & MCMU MusselsMCPrice (USD)b.(1 point) Draw the graph again and shade in the entire area of consumer surplus. Shade in the entire area of producer surplus. (I’m sorry this graph is ugly, but it still works!)c.(2 points) Calculate consumer surplus as the sum of the difference between the marginal utility and the price for each serving up to the last sold. Calculate producer surplus as the sum of the difference between price and marginal cost for each serving. What is the dollar value of consumer surplus? What is the dollar value of the producer surplus? What is the dollar value of the total social surplus? ServingsPriceConsumer SurplusProducer SurplusSocial Surplus1$22.09 $9.91 $7.13 $17.04 2$22.09 $7.67 $5.93 $13.60 3$22.09 $5.59 $4.53 $10.12 4$22.09 $3.45 $2.93 $6.38 5$22.09 $1.66 $1.13 $2.79 6$22.09 $0.00 $0.09 $0.09 Total Consumer Surplus: $28.28Total Producer Surplus: $21.74Total Social Surplus: $50.024.(4 points) Monopoly and equilibriuma.(1 point) Ella gets smart and realizes that she is the only quality bistroaround. Calculate the marginal revenue she gets for each additional4
serving as the change in total revenue (price times sales). Graph this. What is the new quantity of sales and the new price?
b.(1 point) Shade in the entirearea of consumer surplus on your monopoly graph. Shade in the entirearea of producer surplus.c.(1 point) Calculate total consumer and total producer surplus under the monopoly situation. What is the dollar value of each, and of total social surplus?

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